Independent Financial Life Planners Bishop's Stortford: Asian Markets

Thursday, 7 January 2016

Asian Markets

So the New Year global markets got off to a bit of a rocky start and Enables’ IFA's in Bishop's Stortford understand that historically investors have tended to view Asia as a bit of a niche market, rather than a core component of a global portfolio. Asia has undoubtedly been one of the most unpredictable regions. Yet despite this, it has delivered some of the strongest returns in the world over the past two decades. As a latent and untapped consumer market is emerging and companies mature, income opportunities are also increasing, while economic reform and low debt to GDP ratios continue to highlight Asia as a key global holding.

Long term growth potential has to be part of the picture. In the ten years to 31 July 2015, the MSCI Asia ex Japan index outperformed the MSCI World index by close to 40% and the UK’s FTSE All Share index by 50%. In many cases individual markets performed even better, with China, for example, delivering 248% over the same period, more than double the returns from major developed markets. Asia’s favourable demographics (65% of India’s population is under 35, for example) nascent industries and constantly evolving economic landscape translate to strong growth potential.

Asia also has a booming middle class it makes up more than 57% of global emerging markets’ middle class, and this group is expected to drive future growth in the region. In China, the world’s second largest economy, the government is now actively reorienting the economy toward domestic consumption, while in India middle-class consumption is expected to more than double to by 2018-19.

There is still plenty of difference but political and economic reform is inevitable. While there is volatility in the short term, most analysts agree that for China and India in particular have governments that are becoming increasingly market-friendly, which should support investment and growth in the long term. If you want to look at how to make the most of your investment Enable’s IFA's are here to help.

Issued by: Enable Independent Financial Life Planners •  25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339 Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority. It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us. NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Source: Market Views

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IFA Bishop's Stortford

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