...Which countries will be the best and worst to invest in over the next 10 years in terms of relative strength of asset prices in real terms based on:
- their ageing population,
- the expected increasing impact of climate change on their GDP and
- their GDP per capita where the lower the GDP the greater the potential for real terms growth?
This post by Lorimer Wilson, Managing Editor of munKNEE.com, is an edited ([ ]) and abridged (…) version of a portion of the original article by Nadeem Walayat of Marketoracle.co.uk
Best Real Terms Asset Price Growth Countries for the Next 10 Years
The best nations to invest in for the next 10 years based on demographics also carry an elevated climate change risk…[and, as such,] it is best to pursue those most likely to be politically stable so as to allow GDP to grow i.e. Nigeria, Pakistan, Egypt, South Africa, Malaysia, Israel, Algeria, Mexico, Indonesia and then…New Zealand and Australia where both actually see their average age FALL due to continuing immigration…
Canada, the U.S. and the U.K. are closely clustered with their bacon again being saved by HIGH IMMIGRATION with Canada reaping the rewards of a falling average age…
Worst Real Terms Asset Price Growth Countries for the Next 10 Years
Japan and most of Europe top the charts but, surprisingly, Taiwan and South Korea are ticking demographic time bombs worse…[Based] on this metric one should reduce exposure to those corporations that derive their earnings from those nations…
I have a bit of trouble believing that investments in North Korea and Afghanistan are deemed to be among the best. Apart from being difficult to make, there are high political risks and a danger the United States could attack (or attack again) and mess up the economies of either one.
On the flip side, both Switzerland and Ireland have the highest GDP numbers per capita, but they are down rated considerably in these lists. Their political risks are low and they have proven to be reliable.
As a senior myself, I think nations likely to deliver the highest return in the shortest time need to be taken most seriously.