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TOTAL GOVERNMENT SPENDING AS % OF GDP (PROJECTED)Current Government Spending Unsustainable
Source: Congressional Budget Office Projections may not be achieved.
% o
f GD
P
10
TOTAL DEBT AS % OF GDP (PROJECTED)Current Government Spending Unsustainable
Source: Congressional Budget Office Projections may not be achieved.
% o
f GD
P
11
Technological and scientific advances led by the U.S. Unforeseen economic booms (global and domestic) U.S. benefits from further synergies from world economic integration Entitlements can be modified (they are only promises)
But, Things May Be Better Than They Seem…
12
Developing economies helping drive growth Increased productivity and wealth across emerging markets Reorientation of Chinese economy
U.S. energy renaissance Companies have strong balance sheets and low valuations Global Megatrends (MANTRA) may help drive growth
Key Themes for the Future
13
WORLD POPULATION (AS OF 12/31/12) CONSUMPTION GROWTH: EM VS. DM
Significant Growth Opportunities in Emerging Markets
Ann
ualiz
ed G
row
th
1990-2010 2010-2020E0%1%2%3%4%5%6%7%8%9%
7.6% 7.8%
4.5%
1.2%
BRICs G7Emerging MarketsDeveloped Markets
~6 billion
~1 billion
Source: The World Bank, 2012 and Goldman Sachs: “Global Consumer: An all consuming search for growth & consolidation,” 12/31/12. Estimates may not be achieved. Past performance does not guarantee future results.
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Wealth Is Rising Across Emerging Markets
Brazil +46%
United States +35%
Russia +49%
Turkey +66%
Germany +27%
Indonesia +83%
Malaysia +90%
Japan +14%
Vietnam +212%
India +168%
Source: The World Bank, 12/31/12. GDP (gross domestic product) is the total value of all final goods and services produced in a country in a given year. *Purchasing Power ParityPast performance does not guarantee future results.
GROWTH IN REAL GDP PER CAPITA (PPP*): 20 YEARS AS OF 12/31/12 China
+495%
15
Myth:Coca Cola and Nestlé generate the majority of their
revenue in North America
Revenues No Longer Have Borders
Reality:Only 31% of Nestlé's revenues come from
“The Americas.”Only 45% of Coca Cola’s revenue is generated in
North America. Source of data: Bloomberg. As of November 14, 2013.The mention of specific companies does not constitute a recommendation by any Oppenheimer fund or by OppenheimerFunds, Inc. Certain Oppenheimer funds may hold the securities of those companies mentioned.
16
MANTRA®
Mass Affluence New Technology AgingRestructuring
The mention of specific companies does not constitute a recommendation by any Oppenheimer fund or by OppenheimerFunds, Inc. Certain Oppenheimer funds may hold the securities of those companies mentioned.
Poor politics Oil embargoes Emergent Asian superpower (Japan) Stagflation High interest rates Geopolitical uncertainty
1972-1982 2002-2012 Poor politics Oil price high and volatile Emergent Asian superpower (China) Europe directionless Loss of faith in fiat currencies Geopolitical uncertainty
The More Things Change the More they Stay the Same
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