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The American Dream has emigrated

Wider possibilities: for investors, China and Asia in general present promising rewards in the long-term as US economic mobility declines (Photograph by Ng Han Guan, Pool)

NEW YORK (Bloomberg Opinion) — The concept of the American dream, upward mobility achieved through hard work, still exists, says Neil Dwane. The surprise is that it has emigrated to China.

Dwane, a portfolio manager and global strategist with Allianz Global Investors, with $591 billion in assets under management, notes that economic mobility has fallen in the US. The children of today will be the first generation that probably won’t have a higher standard of living than their parents. There are certainly many advantages these young Americans will enjoy — more leisure time, longer lifespans and better health, and broadly distributed technological innovations. However, the sense of can-do optimism has become tattered and frayed. But upward mobility is still alive and well; it’s just taken up residence in Asia, and in particular, China. Entrepreneurship and fast-growing companies are still in the process of ramping up in that region.

Dwane suggests that if you have a 30-year horizon for your risk capital, you will be amply rewarded by investing in that part of the world. The London-based strategist also noted the parallels between the UK and Brexit and the US and Trumpism.

Barry Ritholtz is a Bloomberg Opinion columnist. He founded Ritholtz Wealth Management and was chief executive and director of equity research at FusionIQ, a quantitative research firm. He is the author of Bailout Nation