Why You NEED A Stake In This Nation’s Economy
In 2001 Goldman Sachs strategist Jim O’Neill coined the term BRIC.
He was referring to the biggest and fastest-growing emerging-market countries, specifically Brazil, Russia, India and China.
The reason O’Neill coined this term?
He predicted these four markets would be the economic superpowers of tomorrow. And wow was he right. Since O’Neill’s prediction, those economies have all grown by over $10 trillion.
You might think China is the lead dog, but the BRIC nation that whets my appetite most is India.
India’s Economy Is BOOMING!
Contrary to popular belief, India’s economy is BOOMING.
Its GDP hasn’t had a down year this century. Not one.
And they’ve grown at roughly 7% a year ever since Prime Minister Narendra Modi — who has been described as the Indian version of Ronald Reagan — took office in 2014.
In fact, in the first quarter of 2018, Indian economic growth was 7.7%, making India the fastest-growing major economy in the world.
The World Bank expects India to maintain that 7%-plus growth rate and reign as the fastest-growing economy in the world for the next three years.
For perspective, that is better than China, which is expected to grow by 6.3% and 6.2% in 2019 and 2020, respectively.
That growth is substantially fueled by India’s talented, immense workforce. India is home to 1.34 billion people — 18% of the world’s population — and has an energetic, youthful population of 234 million between the ages of 15 and 24 that are some of the best educated in the world.
Plus, India produces over 1.5 million engineers a year, the largest number in the world.
They’re not just plentiful. They’re also some of the best.
The Indian Institutes of Technology entrance test, the JEE, is considered the most difficult entrance exam in the world. Why so hard?
Because 1.1 million brilliant Indian students battle to get one of the coveted 11,000 admissions into the Indian Institutes of Technology.
And boy are those graduates productive!
How India Could Make You Rich
Thirty-three percent of all companies founded by immigrants in the U.S. were founded or co-founded by Indians. Moreover, Indian entrepreneurs founded more technology/engineering firms than the next nine immigrant groups combined!
The combination of the booming Indian economy and its highly educated engineering workforce is a recipe for big stock market profits…
We know this, and Corporate America knows this too.
That’s why some of the biggest names on the market, from Amazon to Netflix to Walmart, are desperately trying to tap into this booming economy.
But emerging markets are terrible right now you say?
They sure are! But that’s great news for us.
For every downswing in emerging markets, they very often respond with a huge run-up that dwarfs previous losses.
For example, in 2015 emerging markets tumbled 37%. Between 2016 and 2017 emerging markets recovered nicely, soaring 88%.
This year the MSCI Emerging Markets Index is down 20% on the year.
My belief is it’s very likely history repeats itself. Meaning emerging markets look close to becoming a great investment opportunity again.
My advice to you today?
Keep a watchful eye on U.S. companies moving into these fast-growing markets, especially India.
The GDP growth potential in India could also give those companies’ stocks massive upside potential.
Here’s to growing your wealth,
Chief Income Expert, Mike Burnick’s Wealth Watch