History doesn’t repeat itself, but it does rhyme. With each recession and depression one thing is certain, crisis breeds profound change. As an investor, this is important because change means opportunity. Are we about to dip into another recession? I don’t believe so.
Disruptive technology is creating a new wave of economic growth. The Standard Charter Bank identified two economic Super Cycles [times during which the world’s Gross Domestic Product (GDP) grew faster than the average]. They said the first two were:
1870 – 1913 (driven by the United States’ industrialization)
1945 – 1970 (driven by the rebuilding of Europe)
They have identified a third Super Cycle, and we are in the midst of it. It began in 2009 and is being driven by the growing economies of emerging nations. As the world’s middle class begins to expand and the standard of living rises across the globe, I believe we will see the United States’ exports increase. We’ve already seen an increased demand for healthcare services and supplies.
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