Here Comes China

 

The International Monetary Fund just dropped a bombshell, and nobody noticed. For the first time, the organization predicted when the U.S. economy will be overtaken by China, and the “Age of America” will come to an end. And it’s a lot closer than you may think — 2016!

One way to profit from that prediction is to follow the cash flowing into global agriculture to support Asian demand, especially for soybeans.

The demand is so great that China is willing to put serious money into assuring a consistent long-term supply. Last month, the country announced a $10 billion outlay to Brazil for production, storage and transportation of soybeans.

Several factors are contributing to this trend. For one, the global population is exploding by 75 million a year, according to the United Nations. That increase is cutting into the amount of arable land in the world.

In addition, demand from developing countries is surging due to rising standards of living. As the wealth of the population increases, so does its consumption of meat and other foods, and its need for fertilizers.

Finally, there’s still lots of land that’s yet to be exploited. Planted areas throughout the world are expected to continue to expand rapidly, especially in Brazil, one of the largest producers of grains, sugarcane, meat, coffee and low-cost forest products.

Latin Americans are preparing for the new world order with intra-regional free-trade agreements aimed at boosting their competitiveness as suppliers to China. In addition, adding Asian-bound exports of meat, soybeans and other agricultural products to existing shipments of metals and other natural resources adds wealth and stability to the overall economies in the region.

The good news is that these developments will “lift all boats,” so I’m looking forward to more profit-making opportunities in emerging market growth stocks across multiple sectors.

Watch the video.

Rudy Martin, editor of Emerging Market Winners, is widely recognized as an authority on stock and ETF investing. With more than 25 years of investing experience, Rudy started his investment career by co-managing a $2 billion private equity portfolio for Transamerica. He also served as an analyst for DeanWitter and Fidelity Investments, and research director of a quantitative research firm that is now part of TheStreet.com. Recently he has been providing his investment ideas directly to a select list of global hedge funds as Managing Director of Latin Capital Management, an institutional money management firm with more than $180 million in assets under management. For more information on Emerging Market Winners, click here.

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