MENU

Asia is a big opportunity for investment returns

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.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!