…We are now living through the third great power shift of the modern era. It could be called “the rise of the rest.” Over the past few decades, countries all over the world have been experiencing rates of economic growth that were once unthinkable. While they have had booms and busts, the overall trend has been unambiguously upward. This growth has been most visible in Asia but is no longer confined to it. That is why to call this shift “the rise of Asia” does not describe it accurately…
…Look around. The tallest building in the world is now in Taipei, and it will soon be overtaken by one being built in Dubai. The world’s richest man is Mexican, and its largest publicly traded corporation is Chinese. The world’s biggest plane is built in Russia and Ukraine, its leading refinery is under construction in India, and its largest factories are all in China. By many measures, London is becoming the leading financial center, and the United Arab Emirates is home to the most richly endowed investment fund. Once quintessentially American icons have been appropriated by foreigners. The world’s largest Ferris wheel is in Singapore. Its number one casino is not in Las Vegas but in Macao, which has also overtaken Vegas in annual gambling revenues. The biggest movie industry in terms of both movies made and tickets sold, is Bollywood, not Hollywood. Even shopping, America’s greatest sporting activity, has gone global. Of the top ten malls in the world, only one is in the United States: the world’s biggest is in Beijing. Such lists are arbitrary, but it is striking that only ten years ago, America was at the top in many, if not most, of these categories…
…At the politico-military level, we remain in a single-superpower world. But in every other dimension-industrial, financial, educational, social, cultural-the distribution of power is shifting, moving away from American dominance. That does not mean we are entering an anti-American world. But we are moving into a post-American world, one defined and directed from many places and by many people…
-The Post-American World, by Fareed Zakaria
What kinds of opportunities and challenges do these changes present to the U.S. investor? Many will succumb to home-country bias and keep their investments in just U.S. securities. Others will internalize these changes and will broaden their investment universe, they will change their approach to asset allocation, and they will position themselves to capitalize on the investment opportunities wherever they may be found in the world.
Posted by Andy Hyer 
