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5 Countries Set to Cash In on Demographics

A falling dependency ratio often gives way to big growth

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Play: Market Vectors Indonesia Index ETF

Next up, we have our first Asian play. While many associate China with growth potential because it’s a BRIC nation, its dependency is already bottoming out … just as its growth is slowing down.

Indonesia, on the other hand, still has room to run. Its curve — looking at the probabilistic median — will likely bottom out as we near the year 2030, meaning good growth conditions will be around for some time.

Many investors seem to have already scoped out those conditions, as the country attracted a record amount of foreign direct investment in the second quarter of the year — a whopping $6.5 billion, and the sixth straight record.

If you believe a growing middle class of working-age folks will be enough to keep southeast Asia’s largest economy chugging alone, there’s a pure play in the Market Vectors Indonesia Index ETF (IDX). It has been middling since logging nice gains in 2009 and 2010, but could be poised for more upside and new highs in the years to come.

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