The world’s biggest economy The Economist’s coverage of when China will exceed America as the world’s biggest economy reinforces my thesis that emerging markets will grow faster than the S&P 500 on a long-term basis – the question is just whether that event will occur in 2019 or 2022, based upon inputting certain variables. “AndContinue reading “The world’s biggest economy”
Category Archives: Economy
Globalization- Measures of Hope parallel economic measures
Globalization- Measures of Hope parallel economic measures predicting relative outperformance of emerging markets over Western, American S&P 500 in long run The Economist points out that there are subjective, human factors which accompany my thesis that liquidity will flow to emerging markets, that volatility will continue particularly in emerging markets, and that emerging markets willContinue reading “Globalization- Measures of Hope parallel economic measures”
BRIC Innovation
The Economist’s coverage of innovation in emerging markets suggests that innovative BRIC companies are sharing information between themselves – completely circumventing the economic systems of the Rich World. “Smoothly managed China is very different from chaotic India. Brazilians have a much higher standard of living than Indians. Plenty of emerging-market companies are flourishing without eitherContinue reading “BRIC Innovation”
Brazil needs to be more innovative
Brazil needs to be more innovative: The excellent Schumpeter column drives home the point that not all BRICs are equal. “Can their country become an innovator in its own right, or is its recent growth little more than a by-product of China’s appetite for commodities?” “Yet Brazil suffers from two huge blocks to growth: redContinue reading “Brazil needs to be more innovative”
The Big Mac index
The Economist’s Big Mac Index shows that a burger is undervalued in China, but overvalued in Brazil. “Since 14.5 yuan can buy as much burger as $3.71, a yuan should be worth $0.26 on the foreign-exchange market. In fact, it costs just $0.15, suggesting that it is undervalued by about 40%. The tensions caused byContinue reading “The Big Mac index”