The world is changing – Has your portfolio changed too?

The world has changed. Since the start of the new millennium, we have witnessed a global economic revolution. Whilst most of us enjoy the benefits, few of us acknowledge the scope of these changes. Globalisation is now a reality. The price of goods and services we buy from China, India and the former Eastern bloc has played a part in keeping inflation in check, more so than the actions of our own politicians and central banks.

In my opinion, the full significance of this economic revolution has yet to be realised and I believe it will surely change the way we allocate our investments.

The removal of restrictions on trade and capital flows within emerging economies such as China, coupled with rapid technological progress, now means that in the vast majority of cases, businesses in the west are able to source cheaper, and educated labour in the emerging markets.