Two Recession-Proof Stock Exchanges

Exchanges are like casinos. In fact, they are “the house.” Think about it, at the casino, who is the guy that slides cards across the table? Got the answer? Okay. Now, who is the guy that slides stock certificates across the table? The answer to both is “the dealer.” The casino dealer and the agent of the broker dealer.

Many Americans shop around for a good broker (lowest commissions, best executions, etc.) and some Americans shop casino’s for “the loosest slots,” but I’ve never met anyone that shops around for the best exchange. If someone did shop the world for the best stock exchanges looking for the most bullish pools of stocks, here is what they would discover (found at the World Federation of Exchanges):

click to enlarge

The common stereotypes that come to mind when considering Tehran and Colombia are guns and drugs. Which makes a lot of sense right now. In the earlier Great Depression, industries/producers of vice did extraordinarily well.

While I couldn’t find any Iranian stocks traded on the U.S. exchanges, here is the one and only Colombian ADR to consider. If you review the fundamentals of it, you may wonder why its price is going down. If you don’t get it, let me reiterate: it isn’t about the cards, it’s about the house.

Disclosure: no positions

Comments

[robrown1:]

Google UNIFIEDMARKETS.

2008 Nov 19 08:59 AM

[garrason:]

Ecopetrol of Colombia is the 2nd Colombian stock on the NYSE as an ADR.

2008 Nov 20 10:37 AM