Investors have been swarmed with headlines, tweets and sound bites constantly tracking President Donald Trump and his administration's next move. If policies like tax reforms materialize, domestic companies should benefit.
However, trying to predict when these changes will occur and how they will impact U.S. markets is too uncertain. Amidst this buzz, investors might be overlooking more compelling global market factors. Growth in the U.S. has dominated over the past five years, but recently international markets have been outperforming those in the U.S., pointing to possible investment opportunities abroad.
First, we look to China, the world's second largest economy and primary consumer of several commodities, including aluminum and nickel. China has set an example as a global growth engine, which doesn't appear to be losing steam any time soon.
Consumer demand continues on an upward trajectory and wage growth is rising, pointing to a maintained increase in spending power. With the world's largest middle class, some might even say purchasing power in China is reminiscent of the "American Dream" that drove our economy in the 1950's.
The slice of any country's population at working age is imperative to economic growth potential. A rapidly aging population that's crippling resources is a ticking time bomb in places like Europe and Japan. Demographics in China further support growth opportunities over the long term, with a median age of 35.