Henry Kissinger has said that we are at the "End of an Era"…
The end of the Cold War and reforms in China opened world markets to 1.5 billion people, many of them working at wages less than one tenth of those in the developed world. Over the past thirty years, globalization has become a reality, with interlocking supply chains delivering high quality products at low cost worldwide.
An unintended consequence of this has been the hollowing out of developed world economies and a rising cohort of angry voters in search of solutions. Now serious questions are being asked about globalization, free trade and flexible labor markets, while populism and protectionism are providing simple answers.
Meanwhile, the third world is gaining strength – and presenting opportunities for investors.
We will look at the projections for 115 developed, emerging and frontier countries in terms of human capital, investment flows and government quality to gauge their outlook. Then we will project growth rates to 2050 to visualize where their per-capita GDP levels could be and consider valuations and market inefficiencies.
Where should we put our money? We don't have answers, but we do have suggestions.