Looking for growth? Asia and the Middle east

Some of my friends like to talk about stocks and ask my advice on where to put money. I can only hope that these souls are using me as a reverser to ensure that anything they are really investing in is actually the opposite of what I recommend. I pretty much tow the line of most businessmen that I talk with and respect: Asia.

Since I went to China in 1995 as a high school senior I knew exactly what they were saying: the place is huge! There are so many people and they are all busting their asses. When they took us to an advanced school and this room of 8 year old girls all played the violin in unision I got a little intimidated.

Of course we have been hearing this since the 70’s and think that after 30 years it must be too late to get in. The funny thing is that it only takes looking at one statistic to know that there is still so much more to be done and so much more growth to occur before they get close to Europe’s economy and then to the US’s.

Its all about internet usage and percentage of total population. In the US we are at 71% of the total population who has access to and uses the Internet. Still a bit of growth left to go. Europe is at 43% with growth in Eastern Europe being the next growth stages. Asia is at 13%, only Africa comes after them. Clearly there is a lot of room to grow in Asia.

One last stat to chew on: Usage as a Percentage of the World. The US is at 6%, Europe is at 26%, and Asia is at 38%. Let that settle in a bit. Even with only 13% of its population on the internet Asia already has the most Internet Users by over 10% of the next largest population base which is Europe. So as more of Asia gets online this stat will only explode in their favor.

This means that if you want to make money for many years to some you need to start figuring out how to incorporate Asia. Horseradish anyone?