The opportunity for branded goods increasingly lies in faster growing emerging markets. For more than a decade, nations like Brazil, Russia, India and China (“BRICs”) have grown at much faster rates than the West, which has created a burgeoning middle class of several hundred million people.
Investors are now fully aware of the ‘patent cliff’ that the Pharmaceutical and Biotech industries are currently going through. During the period 2011-2017, every single one of the current top 20 largest selling drugs in the world will begin to face generic competition. While this issue has been an overhang for the industry for some years, the ‘unknown’ is how the industry will adapt and evolve to overcome this and other issues it currently faces.
America is on the cusp of an energy renaissance. According to the International Energy Agency, the US will overtake Saudi Arabia as the largest producer of oil by 2020 and will surpass Russia as the world’s leading natural gas producer as soon as 2015.
In 1949 Benjamin Graham published one of the most influential books on investing called the ‘The Intelligent Investor’. In it, he laid out the principles for what has become known as ‘Value Investing’ - the concept of identifying true intrinsic value in the market.
Since US Federal Reserve (‘Fed’) Chairman Ben Bernanke’s testimony to Congress on 22nd May, when he indicated that the Fed may be ready to reduce monetary stimulus, Emerging Market (‘EM’) currencies such as the Indonesian rupiah, Indian rupee and Brazilian real are down 19%, 18% and 14% against the euro. This not only demonstrates how interconnected global financial markets have become, but also the unintended consequences of central banks’ unconventional monetary policies during the crisis.
There is a new found sense of optimism in the Irish commercial property market. Since the beginning of 2012, there has been a surge in investment activity. Transactions worth almost €600 million were completed in 2012, the highest level since 2007. This figure was surpassed in the first six months of 2013 and the projected outlook for the year is in the range of €1.2 billion to €1.5 billion. The top end of this range would compare to 2006 and 2008 - two of the top three years of the Celtic Tiger.
Investors and savers who have been able to achieve a reasonable rate of return on cash deposits in recent years are now having to look elsewhere for yield.
The pace at which Asian nations have transformed themselves from peasant economies into industrial powerhouses has been remarkable. When assessing the future potential for the region, the numbers are unparalleled.
Having just endured the worst recession in the history of the state, encouraging signs have emerged that indicate Ireland is slowly rising from the ashes.
America is gradually emerging from the global financial crisis. Despite predictions of its demise as the world’s greatest superpower, we expect the US to reassert its economic and financial prowess over the next decade.