Developing countries face more favourable demographic prospects than the ageing developed markets. But it takes more than favourable age structure to boost growth. To reap the demographic dividend, many developing countries need much better conditions for employment and investment.
All seems well with markets, but there are always clouds on the horizon. With price inflation remaining contained, one risk we think deserves more airtime is how a corporate margin squeeze could cause the next downturn. The next US Federal Reserve chair is also a mystery that could rock markets and President Trump’s objectives will be central to what candidates have to promise if they’re to get the big job.
There doesn’t seem to be much interest in Japanese investment ideas by foreigners, which makes me wonder whether we are collectively missing a trick. Whether you consider culture, technology, economics or social developments, Japan remains quite different from the western perception of what is mainstream. This makes it an interesting part of the investment universe as it could provide idiosyncratic, diversifying investment opportunities.