Emerging & Developed Economies

The picture below spells it out clearly.

The green line is the S&P 500, it shows that it has made and lost money resolving at zero over the last five years, the red line is Google, a high performance tech stock, it beat the S&P but you would have concentration risk involved with a single stock.

Technology is always (be it computer/bio/engineering) a leading edge sector, but once you get out of a developed world focus you then see the yellow line, the Shanghai index, performing even better than google, and the blue line way up high? That’s Baidu, the Chinese equivalent of Google, the search engine everybody there uses. The general indication is clear though, money for capital formation is flowing rapidly into other economies, so Ireland needs to find a way to attract that capital and without monetary independence it will likely be via an internal devaluation.

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