Investment Decision:
Dying White Guys or Growing Non-Whites?
"If the growth rate of per capita income . . . between 2003 and 2050 remains as it was between 1973 and 2003--averaging 1.68 percent annually in Europe, the United States, and Canada and 2.47 percent annually in the rest of the world--then the combined GDP of Europe, the United States, and Canada will roughly double by 2050, whereas the GDP of the rest of the world will grow by a factor of five. The portion of global GDP produced by Europe, the United States, and Canada in 2050 will then be less than 30 percent--smaller than it was in 1820.
"These figures also imply that an overwhelming proportion of the world's GDP growth between 2003 and 2050--nearly 80 percent--will occur outside of Europe, the United States, and Canada. By the middle of this century, the global middle class--those capable of purchasing durable consumer products, such as cars, appliances, and electronics--will increasingly be found in what is now considered the developing world. The World Bank has predicted that by 2030 the number of middle-class people in the developing world will be 1.2 billion--a rise of 200 percent since 2005. This means that the developing world's middle class alone will be larger than the total populations of Europe, Japan, and the United States combined. From now on, therefore, the main driver of global economic expansion will be the economic growth of newly industrialized countries, such as Brazil, China, India, Indonesia, Mexico, and Turkey."
Jack A. Goldstone, Foreign Affairs, Vol. 89, No. 1, pp. 33-34.
I don't know much about finance and investing, but it'd make sense that you'd want to invest in that expansion. Possible options: EPP, EEM, VWO, DGS.
But you may want to hold off for a while, to see if there's a sharp correction. Many people think the emerging markets are over-priced right now.
