How To Play Global Growth

Description:

Durable goods (ex: computers, TV's) are typically considered luxuries. Thus, durable goods experience faster growth than do nondurable goods given a rise in income (evidence: between the 3rd quarter of 1960 and the 4th quarter in 2001, spending on durable goods as a % of consumption increased from 6.9% to 15.6%. In comparison, spending on nondurable goods over the same time period fell from 40.5% of consumption to 29%). Being that globalization and capital mobility will likely lead to rising global wealth over time, this should then be bullish for durable goods.

To best take advantage of this very long-term, slowly evolving trend, it appears that you must maintain a position in durable goods. Also, make sure to purchase companies highly levered to global (ex-U.S.) growth.

Most Viewed Portfolios

View All

Articles

3 Big-Volume Stocks to Trade for Breakouts

10.21.14 | 07:00 AM

DELAFIELD, Wis. (Stockpickr) -- Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track...

4 Stocks Spiking on Unusual Volume

10.21.14 | 07:00 AM

DELAFIELD, Wis. (Stockpickr) -- Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track...

More Articles
blog comments powered by Disqus
brokerage partners
connect with Stockpickr
Fan us on FaceBook
Follow us on Twitter