Market Insights: Global GDP growth

Global GDP Growth

As a Canadian or American investor, we often focus too much of our attention on local markets.  This 'home' investment bias is very prevalent across our industry.  As global asset managers, we know there are more opportunities out there and it is important to be aware of where future global growth is and will be generated.  Global growth is being generated by emerging economies now more than ever.  

Unfortunately, economic growth does not have a useful correlation with equity market returns; however the ramifications of that growth are important.  Our portfolios tend to be well distributed geographically across not only the Americas, but internationally as well.  We believe this portfolio exposure will be important for diversified growth and we intend to focus on some of these individual international markets when opportunities arise.   

Here is a chart from Canaccord Genuity showing estimated contribution to 2015 GDP growth with data from the International Monetary Fund.  They estimate that 70% of global GDP will be created by China, India and other emerging markets.