A new decade means a new set of trends that investors need to be on the lookout for. In this piece, we’ll look at three companies with strong secular tailwinds that’ll propel their stocks to new heights over the next decade and beyond.
Without further ado, let’s get right into them.
Fairfax India
The first trend is the continued rise of India.
In the 2020s, the Indian economy is likely to flex its muscles with sustained growth rates of around 7% — a rate that’s just not sustainable over the long run for developed economies. With a pro-business government in place and ambitious infrastructure projects continuing to be rolled out, India is a top emerging market for growth-savvy Canadians who are looking to grow their wealth over the next decade and beyond.
Should commodity prices continue to drag, Canadians are going to need to open up to the idea of putting money to work in foreign markets if it’s their desire to attain above-average results over time. With one-stop-shop investments like Fairfax India Holdings readily available on the TSX Index, it’s never been easier to get a front-row seat to one of the best generational opportunities on the planet.
Oh, and let’s not forget that Prem Watsa, Canada’s own version of Warren Buffett, is sailing the ship with a wealth of knowledge on where to look for deep value in a market that many Canadians may be unfamiliar with.
At just 0.95 times book, Fairfax India is a ridiculously cheap and could be a name that could yield market-crushing returns through the 2020s.
Canada Goose
China is another international growth opportunity that could yield the most rewards for investors. You could invest in individual Chinese ADRs, or you could place a bet on a Canadian business that’ll be heavily reliant on the Chinese market for growth in the 2020s.
A great deal of forward-looking growth for luxury outerwear maker Canada Goose (TSX:GOOS)(NYSE:GOOS) will come from China in the 2020s. While the Chinese economy has shown signs of slowing down thanks to the U.S.-China trade spat, China’s GDP will likely revert back towards its mean when the tides inevitably have a chance to turn.
Not only is China an economy that could sport growth rates averaging 6-7% in the 2020s, but another trend to watch out for is the continued growth in China’s middle class, which will fuel the appetite for high-end foreign goods like Canada Goose’s $1,000 parkas.
With a solid omnichannel presence and a growing footprint in China, I suspect that the Goose will fly for the patient investors who are willing to pick up it amid global economic instability.
Jamieson Wellness
Finally, we have Canadian vitamin, mineral, and supplement maker Jamieson Wellness (TSX:JWEL), with its brand equity that’s been built over the course of nearly a century.
Like Canada Goose, Jamieson is another top foreign brand in China. But it’s not just the rapidly rising Chinese economy that acts as a tailwind for the green-capped vitamin producer. Baby boomers are ageing, and with that will come an increased appetite for various supplements to maintain a healthy lifestyle.
Moreover, as a public entity, Jamieson now has the capital it needs to pursue the development of new products, which could bolster sales growth at the domestic and international levels. Jamieson may be an old company, but it’s newfound deep pockets, I believe, will give it a shot in the arm in the 2020s.
