Sunday 13 May 2012

Investing In Urban Migration is Still a Sound Decision

By Joe Davis


Urban migration, AKA urbanisation, is the physical development of urban areas as a result of worldwide change and according to the U. N half the world's population now live in these areas. Between 2010 and 2015 we expect to see 350m folks in rising economies to undergo urbanisation. In the following couple of paragraphs we may explore how this trend is creating exciting chances for financiers.

The modernisation and industrialisation of developing states such as India is driving a prosperous circle of job creation, higher wages and better standards or living. Tempted from the rustic countryside to the busy cities this in turn creates a requirement for products and services unavoidably leading to more jobs and more wealth.

Predictably this new demand is creating good long term possibilities for the canny investor as firms from developed and developing economies harvest the rewards that come with mass migration. Of course funds are established to take greater advantage of this such as QROPS Pension, SIPPS and similar investment vehicles.

In 1975 there were only 3 towns in the world with a population of more than 10,000,000 people and by 2050 the United Nations guesstimates there will be no less than 29 of which 24 will be in emerging economies. All taken with all 83% of the world's population will live in towns.

Urban migration gives us greater labour forces which keep earnings lower which allows firms to increase at an expanded rate. Public services also will be forced to keep up with demand creating investment in power stations, airfields and public transport a necessity.

Growing populations create different wants like demands for sounder health care, sub-structure, sanitation, education and living standards. Whether or not it's cellphones or more brand choice standards will insolvably improve. Discretionary incomes drives aspirational spending, influencing brands, thought about as opulent, to market their products to these new consumers.

This explosion in migration to the towns is almost impossible to stop as the agricultural labour force crave for the trappings and approach to life that the metropolis can offer. With this migration comes also the necessity for new technologies with the most vital being power, water, food and transport. These areas alone provide boundless possibilities for new companies which in its turn will supply many rewarding investing opportunities.

Not even the global finance disaster has stopped the growth of emerging markets it has only slowed it down. Consumer from these developing economies just keep on spending which has helped fight off some of the results of a worldwide recession.

When considered in its totality these findings make for some exceptional chances for investors.




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