MENU

Asia is a big opportunity for investment returns

Credit: Dennis Jarvis

There are few investment themes that can genuinely create huge returns for us as investors.

It would have been impossible to miss how a few technology businesses in the United States have truly revolutionised the world and how we view it.

It’s only been 10 years since the iPhone was launched and now most of us are inseparable from our devices. You might feel as though you’ve left one of your hands at home if you forget your smartphone.

There is another seismic shift going on right now, which is the growth of Asia. Some people might have an image of most Asian workers being ‘sweatshop’ workers. There are still low-paid workers and inequality is still strong, but there is also a huge growing middle class.

Indeed, estimates put the Asian middle class as a larger demographic than the entire American population. If that isn’t already true, it will be soon.

This growth initially led to demand for Australian resources, which is why BHP Billiton Limited (ASX: BHP), Rio Tinto Limited (ASX: RIO) and others have been such stronger performers over the past two decades.

We have also seen consumer stocks like a2 Milk Company Ltd (ASX: A2M), Bellamy’s Australia Ltd (ASX: BAL) and Blackmores Limited (ASX: BKL) rocket on growing demand. Those growth stories are far from over.

But, it could just be the beginning for other ASX businesses to profit considerably from the Asian strength. Macquarie Group Ltd (ASX: MQG) is recognised as a world leader in infrastructure. Costa Group Holdings Ltd (ASX: CGC) is growing its food exports and expanding its own farm network in China.

It’s not hard to imagine that other businesses will be able to find Chinese-driven growth. Ramsay Health Care Limited (ASX: RHC) wants to expand there. Tourist-related shares like Sydney Airport Holdings Ltd (ASX: SYD) and Crown Resorts Ltd (ASX: CWN) are experiencing growth thanks to Asian tourists.

Foolish takeaway

Some of the best opportunities for Australian businesses are with the Asian countries due to their large populations and growing wealth. Some brave investors could find that the best opportunities may actually be on Chinese stock exchanges like Tencent on the Hong Kong exchange.

Others shares with just as much growth potential are these top growth ideas.

4 Stocks To Build Your Wealth

Renowned investor Scott Phillips just released a brand-new report detailing his 4 favourite stocks to buy right now.

And I don’t know about you, but I always pay attention when some of the best investors in the world give me a stock tip.

This is your chance to get in at the very beginning of what could prove to be very special investments.

Click here to get started today!

Motley Fool contributor Tristan Harrison owns shares of COSTA GRP FPO and Ramsay Health Care Limited. The Motley Fool Australia owns shares of and has recommended Blackmores Limited, COSTA GRP FPO, Crown Resorts Limited, and Sydney Airport Holdings Limited. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended Ramsay Health Care Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.