Some of the Best Parts of Our Future May be in International Investments
Last week, we hosted a Lunch & Learn about international investments. Our speaker, Roger Bianco from Capital Group, offers some timely and timeless advice.
Where does the company earn its returns?
Think about where the companies sell their products, not just where they are headquartered. What determines most of that company’s success is not what you might think: some of these companies earn most of their revenue in other parts of the world, so a company’s home country may not be as relevant as you think. Instead, Capital Group recommends we think about where the company earns.
Healthcare innovation is reaching warp speed
Healthcare is growing at a very fast rate, 19.8% per year, and is expected to continue through 2028. Remote monitoring of health – including cardiology, blood, cancer, sleep disorders, weight management, and more – may become the norm! Including, possibly, a cure for cancer. Cheryl Frank at Capital Group, American Funds, says “I believe some cancers will be functionally cured with cell therapy between now and 2030.” Many of these technologies are being developed outside the USA. And, obviously, more patients live outside the USA than inside the USA, so you may want to be invested in companies whose revenue sources are international.
Cash will be a distant memory
Digital payments are growing at a quick pace. And this trend, says American Funds Capital Group, will continue.
Wearable technology will blur the lines of reality
Think about the Babblefish, from the movie Hitchhiker’s Guide to the Galaxy. The universal translator exists today, when it was only science fiction in 1987. Today, you have Google Translate, and other technology, that translates the languages we speak almost simultaneously. Soon, this may become simultaneous. Traveling the world, and doing work all around the world, will become even easier. This is another major trend in favor of international investing.
Digital entertainment will take center stage
The future of entertainment is international. The incredible diversity, low cost, and the duration of time that it provides, is unparalleled. People spend more time on streaming, video games, and mobile games and other entertainment than ever before, and they get more value out of it than ever before. Much of the rest of the world is just now starting to get this technology. The innovation here “cannot be stopped.”
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