No. of Recommendations: 2
Reasons for continued/new investment in the US
1. The US population, land mass/geography/infrastructure, resources & capital are differentiating
2. This composite differentiation will continue attracting talent, investment & scaled innovation.
3. The US will continue protecting wealth generation with favored currency, private property & rule of law.
4. America will resume global engagement, perhaps with a more enthusiastic approach to consensus.
5. The institutional inertia of America's administrative gov't, universities, NGOs & financial system endures.
6. Personal liberties enshrined in both a constitution and national culture remain immigration magnets.
I am not sure that the factors listed above are factors that can predict future returns. I looked at returns from 1/1/2000 to 1/1/2010.
USA 3.8% CAGR
MSCI Emerging Markets 6.1%
MSCi World 5% CAGR
During that period, the factors listed above have perhaps worsened since 2000.
Rather than looking at a country to invest in, I am wondering about investing in Sectors on a worldwide basis. Say Utilities or Technology, or top 3 sectors etc., and spread the investment over several countries. I don't think there is anything special on a country basis, in general, except the waiting of a sector in that country (S. Korea, technology).
Aussi
