Emerging Market Investing: Where the World's Headed

I’d like to share one anecdote with you that says a lot about how the world is changing.

Last week, Caterpillar, the world’s biggest maker of earthmoving equipment, said it was boosting its production in Brazil and China. It’s building a new facility in Brazil to build things like backhoes. And it is quadrupling its output in China over the next four years. It also plans to base an executive in Asia for the first time.

Think about this: Caterpillar gets two-thirds of its sales outside of the US. It shed 19,000 full-time jobs last year. This year, it will hire 9,000 workers. But more than two-thirds will be outside of the US.

I’ve said it before, but it’s worth repeating: Investors must look abroad for growth.

Chris Mayer
for The Daily Reckoning