Skip to main content
No. of Recommendations: 6
You could make a good argument that investing primarily in the largest one country that is 24% of the world economy is adequate only if you have faith that the other 76% of the world economies are in sync with the US.

Granted. However, as a general observation, it is almost always the case in any field that the big kahuna is, well, the Big Kahuna and everybody else is the tag-alongs.

There's an old saying: "When America Sneezes, the World Catches Cold"

Regardless, in making such an argument it's a whole lot different to say "I'll invest primarily in the country with 25% of the world GDP." vs. "I'll invest primarily in the country with 4% of the world GDP." To a US citizen, home country focus is a good proxy for worldwide focus.



Depends on where you get your data from. It's interesting to me that the country's GDP as compiled by the International Monetary Fund, World Bank and United Nations are all pretty consistent estimating China's GDP as approximatly 64% of the US's. But the CIA estimates China's GDP almost 20% larger than the US GDP.

Yeah, well, the CIA doesn't have such a good track record.

One thing we know about communist & dictator countries is that they lie about finances. So I don't have a lot of confidence in what China says about their economy.
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.