Despite the tough\u00a0economic and investment environment, asset managers Marriott have identified three macro trends playing out that hold significant opportunities.<\/p>\n
Below are some of the most important trends to look out for before considering stock purchases:<\/p>\n
Rising incomes in the developing world<\/strong><\/p>\n The GDP growth of many major emerging markets is increasingly being driven by household spending as they transition from investment-led to consumption-driven economies.<\/p>\n Over the next 5 years it is anticipated that incremental consumption growth in China and India will equate to a market about the size of Japan.<\/p>\n The annual consumption in emerging markets is expected to reach $30 trillion by 2025 while the consuming class is expected to rise from some 2 billion today to nearly 4 billion.<\/p>\n Consumer facing multinationals with meaningful footprints in the developing world will therefore benefit from what we believe to be a significant growth opportunity of the next decade.<\/p>\n Aging populations in the first world<\/strong><\/p>\n People born in the baby boomer generation \u2013 those born post World War II until the early 1960s \u2013 are reaching retirement age.<\/p>\n By 2030, there will be a one third increase in the number of people over the age of 60 in the developed world.<\/p>\n Baby boomers are also living longer \u2013 in some societies as much as three decades longer than they did a century ago. They have higher spending power and own more assets than any other generation.<\/p>\n In the US, boomers represent 44% of the population and in the next 5 years, they\u2019re projected to hold 70% of US disposable income and buy 49% of total consumer-packaged goods.<\/p>\n Healthcare spending by boomers is projected to rise by $1.4 trillion and they are currently responsible for 80% of all luxury travel spending.<\/p>\n Companies which target this generation\u2019s consumption habits will have a ready-made market for their goods and services.<\/p>\n Technology enabled efficiencies<\/strong><\/p>\n Advancing technology presents investors with a major opportunity. Business is expected to benefit from long-term gains in efficiency and productivity as well as connectivity \u2013 termed the 4th Industrial revolution and the Internet of Things.<\/p>\n It has been predicted that by 2020 there will be over 26 billion connected devices \u2013 more than three connected devices per person on the planet.<\/p>\n Data production will increase by approximately 44 times by 2020 and only 10 -15% of companies globally currently use data efficiently to optimise performance.<\/p>\n The upside potential of this trend is significant.<\/p>\n What to buy<\/strong><\/p>\n Considering these trends, Marriott identified certain stocks which it believed investors should buy and hold for the next decade.<\/p>\n They fall into three general themes:<\/p>\n Companies which own the world\u2019s most sought-after consumer brands<\/strong><\/p>\n P&G, Unilever, Reckitts Benkiser and Nestle own brands like Pampers, Dove, Dettol & Nescafe just to name a few.<\/p>\n Demand for these products is likely to increase substantially in the years ahead considering the rapid growth of the consuming class.<\/p>\n World-leading pharmaceutical companies<\/strong><\/p>\n Johnson & Johnson, Pfizer, GlaxoSmithKline and Sanofi are amongst the biggest pharmaceutical companies in the world and own a large percentage of the globe\u2019s essential medicines ranging from vaccines to cancer treatments.<\/p>\n As such, these four companies are likely to be major beneficiaries of aging populations in the first world.<\/p>\n The world\u2019s finest manufacturers<\/strong><\/p>\n Companies like GE and Honeywell are leading the way when it comes to connecting equipment to the internet and analysing data to optimise performance.<\/p>\n Not only are the top quality manufacturers, they are leading the digital trend and are at the cutting edge of the fourth industrial revolution.<\/p>\n GE has recently hired 1,000 programmers and boasts excellent dividend prospects. Honeywell is among the world\u2019s largest providers of automation and control products, with operations across the globe.<\/p>\n
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