Some stock market experts think that there are limited opportunities for growth among American companies. But at the same
When considering investing in companies overseas, there are a number of factors to look at when trying to determine growth potential. These factors include the economic and political conditions of the country as well as the country’s demographics. With this in mind, here are 5 countries worthy of investment:
Experts see Isreali stocks as being resilient. These companies operate in a region with high geopolitical risk yet they are currently outperforming stocks in nations that have far less risk.
What’s more, Standard and Poor’s has upgraded the country’s credit outlook to AA-. The upgrade was the result of the government’s budgetary successes in recent years as well as the fact that the country’s economy has grown by 3.5% in the past 10 years.
The country’s high-tech sector and natural gas industry are expected to flourish in the coming years.
The near-term and long-term forecast for Chinese companies is positive. Some believe that the country is on the cusp of major technological advances and that the top companies in the country are set to see huge profits. Among these companies are those in the following fields: Internet technologies, e-commerce and travel services.
The big thing India has going for it is youth. A major problem for many leading economies is an aging working population, but this is not happening in India, which is on target in 2020 to be the world’s youngest country.
In 2017, the median age in India was a little more than 27, which is far younger than other Asian titans, such as China (38), Japan (47) and South Korea (42). Also, 34% of the country consists of millennials and almost 50% of its workforce.
With smartphone and Internet use exploding in the country, e-commerce is expected to explode there as well, from $30 billion in 2016 to $200 billion in the next decade.
Turkey’s currency is currently very weak, but some experts see this as a positive. They see low P/E ratios because of this, which makes the country a considerable bargain.
Additionally, experts are attributing the country’s currency woes to politics, which they do not believe will affect earnings. Also, because the Turkish lira is low, companies in the country are paying wages with less dollars while exchanging products and services for the same amount of dollars as before. This is resulting in large profits.
South Korea is another country where companies are exhibiting low P/E ratios. At the same time, the political risk there is small. It also has been experiencing a 2.7 GDP growth rate.
Another factor favoring South Korea has been the decreased risk of war with North Korea. This could lead to rising valuations for major companies there.