While industrial investment themes may reward investors only over specific parts of the investment cycle, the steady growth in consumption represents a compelling and enduring theme that deserves long-term inclusion in any equity investor’s portfolio.
One of the most significant effects of the rebalancing of economic growth from mature, developed economies to fast-growing emerging markets is the explosion we are about to witness in the global middle class and the consumer boom that comes with that. The idea may be simple, but the investment implications are many-faceted. Nimble and focused local players offer the best opportunities in some areas, while western companies with strong brands and big advertising budgets are best placed to benefit in others.