Monday, October 24, 2011

The Future of Money

Past purchases of american people and other westerners will be future purchases of rest of the world (people). With few exceptions, most people in these emerging countries were behind in purchasing capabilities. With recent economic changes; people of india, china and other highly populated countries have acquired purchasing capabilities. These emerging markets are a boon to companies that are dying or showing stunted growth in America. Most businesses are focusing in these countries and rightly so.

Industries like PC, chip, coffee, retail, auto, phone, credit card are going to do great. Companies like coke, pepsi have already taken advantage of this years ago. They are saturated businesses but will continue to generate income as people will continue to consume. With increase of car sales in these countries, there could be a great demand for oil, gas (petrol). With each new generation, the possibility of credit card usage will increase and so most purchases will be made on credit cards, debit cards and other services like paypal.

With lack of credit cards, i believe that e-purchasing did not grow to its full potential. Keeping this in mind, i see a great future for eBay (also because it has paypal). With PC growth, Dell and other companies have a great chance of making money. India and China being the most prosperous and populated ones, i think companies will focus more on these countries. Since most Indians and Chinese look for bargain, it is obvious that companies which can offer services or goods for less will ultimately win the race (in the long run for sure). With PC market comes chip maker, Intel will have a wonderful future. Starbucks, Dunkin donuts with coffee ( other coffee suppliers). American express, visa, master card with credit card business. Walmart, target and other in retail. American cars and european cars will have high demand. In addition, diamond market will grow in a huge way as people will put gold in the second place. I know i wrote that people look for bargains but diamonds are an exception.

In fast food area - Mc Donalds, papa johns, dominos and other chains will prosper heavily. There are innumerable opportunities looking into future. This is the time to invest in companies that are willing to take a step towards these growing economies. Leave a comment to say if you agree or disagree with me.