mylittlebuttercup

Hard To See the Connection Between Country Funds and GDP Growth Rates

Great Idea for an article - but aren't you missing many levels of analysis - such as PE ratios - you wouldn't expect a country growing twice as fast as another to have better stock market returns if its PE ratio is alreay 4 times more. The analysis doesn't seem to be much different than it would need to be for an individual stock. The increase is the country's earnings is only one thing to look at when estimating its likely appreciation.