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Economic Freedom: A Catalyst for Wealth Creation |
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| Used with permission of the Heritage Foundation. Washington D.C. Use of this chart does not indicate an endorsement of Calamos Investments or its products.* |
Democracy and Economic Liberty
One of the most important trends for investors today is the expansion of democracy and economic freedom. History has shown us that with democracy and freedom, improved standards of living and wealth follow. As standards of living improve, so does consumption, education and competition. These societal transformations change economics as well: Freedom, transparency of government and private property rights all lower the costs of capital. This, in turn, improves returns on capital.
Our investment strategies emphasize countries (both developed and emerging markets) that embrace economic freedoms, such as a credible rule of law, private property rights, transparency and consistency in accounting, and a fair and clear regulatory environment.
Globalization Changes the Landscape for Business
Thanks to technological innovations, companies can pursue the opportunities of a global, rather than local, marketplace. This globalization also creates increased competition. Companies all over the world—including technology, outsourcing and for-profit education—have benefited as corporations spend more on productivity enhancers.
People Want Access to Everything, Anywhere, and at Anytime
People want to be connected to information, entertainment and one another, no matter where and when; this has stoked demand for content at many price points and in multiple formats. We believe the digital revolution will further fuel the appetite for content, as consumers embrace technologies that help them stay connected. This trend should provide sustained demand for innovators in internet, wireless infrastructure, telecommunications and media.
Global Demographic and Wealth Shifts
Populations are aging in developed markets; this should serve as a catalyst for segments of health care, and (particularly in the U.S.) for consumption-based industries catering to retirees, such as resorts and vacation properties. Financial services companies may also benefit by introducing solutions to help retirees manage and grow their portfolios. Meanwhile, emerging economies are seeing their labor forces expand (and specialize) in response to the export of technologies and industries by developed countries. We expect emerging markets with younger populations and lower-cost goods to meet—and prosper from—growing demand from aging populations in developed markets.
Our View of Global Opportunity | Comprehensive Research 