There are a couple of sectors and asset classes that just scream growth.
Technology and biotech stocks come to mind. Fast-moving earnings and growth are hallmarks of both sectors. When it comes to regions of the world, emerging markets take the cake. And the story behind them has been well televised. Growing consumer bases, rising wealth, vast infrastructure improvements, commodity resources, etc., have been driving returns for the developing world in our portfolios.
That is until the bottom dropped out during the credit crisis.
Since the worldwide crisis, emerging markets have been in a deep funk. Returns have suffered, GDP growth has been slashed, and investors in these regions have been left wondering, what happened?
But all of that could be changing. Several analysts and investment groups now predict that emerging markets could once again be on the cusp of a multi-year rally as many of the issues holding them back have been lifted. For investors, the time to bet on emerging markets could be now.
Click here to find information on the top emerging market equity ETFs.
Great Gains, And Then Nothing
Travel back in time to 2007/2008-ish and the world was a vastly different place. Sitting at the head of the table were developing nations. Led by the BRIC – Brazil, Russia, India and China – the entire subset of the world that was just starting on their economic journeys was racking up massive returns driven by their potential. You had strong commodity and manufacturing gains propelling their large populations out of poverty. And in that, these faster-moving nations were the place to find great gains for investors.