A Concise Case for Emerging Market Investing

Are you an emerging markets investor?

You know, it’s a big world out there, and focusing solely on US markets could mean missed opportunities.

I mean sure, when you look at the US, it’s clear that our markets are the largest and most liquid of any other country around.

But here’s the thing: US markets represent only about 45% of global stocks traded, while our economy represents just about a quarter of the world’s total.

So, what does that mean?

Well, it means that there’s a whole world of opportunities out there, especially in emerging markets and it’s worth taking a minute to think it through.

More specifically, when it comes to investing in countries like China, India and Korea, it’s crucial to note that these emerging markets account for around a quarter of the world’s stocks traded.

But here’s where it gets interesting: emerging markets contribute to nearly half of the world’s economic output.

And so, if you stop to think about it, there’s a mismatch here, right?

Well, that’s where the investment opportunities come in.

You see, in developed markets, like the US, the median age hovers around 42 years old.

But if you look at what’s going on in emerging markets, excluding China, the median population age is around 26.

And so, that age difference isn’t just a number; it reflects a youthful population that’s likely to drive consumption, innovation, and global economic growth in the years ahead.

So, why should you care?

Well, incorporating emerging markets into your portfolio isn’t just about diversification.

It’s about tapping into a demographic dividend and growth potential that could redefine economic and corporate earnings patterns in the years ahead.

So then, as you’re considering your disciplined investment strategy, be sure to consider how tapping into emerging markets likely could not only spread out your investment risk but also anchor your portfolio in the potential growth of tomorrow’s economy.