Geo-Political Risks and Your Portfolio

Garett Jones - Economist at George Mason University.  Follow him on Twitter: @GarettJones

The Canadian oil and gas industry’s faltering reputation is hurting its ability to attract the country’s youth despite the promise of six-figure salaries.

Barclays will pay additional $1.6 billion fee on clients, who have been mis-sold toxic securities. India’s market for luxury goods continues to grow, despite the crisis. The US government charged S&P for falsifying rates on risky investments. Facebook is the most used app on mobile devices with 23% of the total time used on mobile apps.   

I know cynicism-hardened Naked Capitalism readers will expect the answer to the question in the headline to be “no”. But based on a summary of the filing at Bloomberg (and having conferred with lawyers on this beat), the answer looks more like “possibly yes”.

Malaysia is facing its share of uncertainty in 2013, with both the local stock market and the national currency registering unusually high levels of volatility. Much of the turbulence can be linked to elections that will take place later this year. But strong domestic demand and booming foreign investment indicate that the economy remains strong, regardless of how uncertain the political situation may appear.  

Our team has put together a great table ranking 19 emerging market countries by how their stocks have performed in each of the past 10 years. Most of the E-7 countries—the most populous nations in the world—are listed, including Brazil, China, India, Indonesia, Mexico, and Russia, as well as other resource-rich and growing Asian, Eastern European and Latin American countries. Many investors tend to focus on how one country performed over any given year, but a year of results is less relevant than what this chart highlights: the concept of mean reversion.

Our team has put together a great table ranking 19 emerging market countries by how their stocks have performed in each of the past 10 years. Most of the E-7 countries—the most populous nations in the world—are listed, including Brazil, China, India, Indonesia, Mexico, and Russia, as well as other resource-rich and growing Asian, Eastern European and Latin American countries.

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