While much of the text in American newspapers talks about the declining level of the middle class domestically, investors might be missing the greatest growth of wealth in history.
As investors, our goal is to determine which firms will report strong and growing corporate earnings. With much of the world increasing its wealth at a rapid rate, companies with international revenue and corporate earnings should do well over the next several decades.
According to the Boston Consulting Group, there will be approximately one billion middle-class consumers in China and India by 2020. While it took Britain 150 years during the Industrial Revolution to double income per capita (America took 30 years), China and India are moving at a much faster pace. (Source: "The Emerging-World Consumer Is King," The Economist, January 5, 2013, last accessed February 15, 2013.)