The world’s population has increased more than tenfold in the past three centuries, and it is expected to reach 10 billion in this century. To put this in perspective, human biomass is already 100 times larger than that of any other animal that has ever lived on the planet.
This new human-dominated era has a name: The “Age of Man.” And the growth of humankind itself has become the world’s most important investing trend.
This kind of “mega trend” may not be winning a lot of attention in the mainstream media. But it is a critical insight for global investors. The “Age of Man” is literally changing the face of the earth. As such, it will have profound implications on every investment decision you make.
Once you understand the implications of this, an important question arises: How do you invest in the “Age of Man”? The answer is remarkably simple: You invest in what people need and what people want.
One of the contours of the population bulge is that most of the growth is happening in the emerging world, in places where people are for the first time leaving poverty and entering consumer society.
What these people need is basic materials to build better homes, more animal protein for their diets and more energy to power their new lifestyles.
One company that is set to profit in a major way from demand for basic materials is one of the largest mining companies in the world.
As new consumers in the emerging world drive up demand for steel to build homes with, demand for iron ore (a major product for this company) will rise. This company is also a major producer of nickel and manganese, important alloys in making high-tensile steel.
This is good news. Because at writing, shares of this company look cheap. Not only that, but it’s both a value and a growth stock…and a great addition to your “Age of Man” portfolio.
Of course, the world’s new consumers will have wants, too. After they have built better houses…and better factories and offices…they will go shopping.
And just like consumers in the West, one of things they will desire most will be new gadgets. In particular, smart phones. Smart phone sales will hit the 450-million mark this year. And this market is growing like crazy—at a pace of roughly 50% a year.
To play this growth, you could buy shares in a smart phone maker such as Apple, BlackBerry or Nokia. But this is a highly competitive market. And today’s winners can easily become tomorrow’s losers.
So I prefer to make a much safer bet and buy the mobile technology behind these devices. One company in particular is a great place to start. For one, the company’s technology is probably already in the phone you’re using. Even though this is a competitive market, these guys have a huge R&D budget—$9 billion spent on research-and-development last year. That highlights the kinds of advantages this company’s size and scale bring.
And even better, at current levels, this is also a value and a growth stock.
These are two of the best ways to profit as the “Age of Man” continues. Snap these two bargains up before it’s too late.
Editor’s note: You can read the full investment report from Chris—including ticker symbols for U.S. stock exchanges—on page 22 of the current issue of International Living magazine. You can subscribe here now and access the issue online instantly.