Will government upgrades equal prosperity?
Looking at the planets governments it seems that an upgrade cycle has begun. Developed nations are realizing that they have been sold a bill of goods by elected officials at all layers of their bureaucracies and now face trillions of units of wealth (Dollars, Pounds, Euros and Yen) in unfunded liabilities that young people have no plan of paying for. The emerging markets are experiencing the consequences of mass communication and dictators, kings and rulers are becoming extinct in the process.
When this government upgrade cycle is over, will the average global consumer look more like today's American consumer? I think so.
The background for these two charts. First chart is EEM against SPY, MDY and IWM for the past year, the second chart is for five years.
One interesting side note I noticed is US Small Cap, IWM has underperformed US Mid Cap by some significant margin in the past five years.
EEM is not as cheap as the one year chart may indicate.
When this government upgrade cycle is over, will the average global consumer look more like today's American consumer? I think so.
The background for these two charts. First chart is EEM against SPY, MDY and IWM for the past year, the second chart is for five years.
One interesting side note I noticed is US Small Cap, IWM has underperformed US Mid Cap by some significant margin in the past five years.
EEM is not as cheap as the one year chart may indicate.
Posted by Bradley Fluetsch at 3/2/2011 6:57 AM 
Categories: Asset Allocation
Tags: stock bond equity index ETF Emerging small large Cap retirement IRA
Categories: Asset Allocation
Tags: stock bond equity index ETF Emerging small large Cap retirement IRA
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