BRIC Countries: Brazil
One area where Brazil has excelled is making headway toward energy independence.
Every year the Heritage Foundation evaluates all the world’s countries using their Index of Economic Freedom, where a high score correlates to nearly every positive measure of a country. We then use this analysis to craft our Foreign Stock investment strategy that we call “Freedom Investing.”
One area where Brazil has excelled is making headway toward energy independence.
The benefits of investing in the countries with the most economic freedom.
You can both diversify for safety and boost your returns by adding international investments to your portfolio.
Countries must allow all of their populations to participate as fully as possible.
On average, international stocks appreciate more than US stocks. What’s more, companies located in countries with the most economic freedom typically appreciate more than the broader international average.
Investing isn’t about finding a four-leaf clover or the pot of gold at the end of the rainbow.
Australia’s five-year annualized return was 24.10% compared to 14.98% for the MSCI EAFE and 6.19% for the S&P 500.
On average, international stocks appreciate more than US stocks, and stocks in countries with the most economic freedom appreciate more than the international average.
“A wise and frugal government shall not take from the mouth of labor the bread it has earned.” – Jefferson
Canada is the one major country that is not included in the EAFE (Europe, Australia, and Far East) foreign index. Not only are they good neighbors but a good investment.
French labor laws have made doing business in France with French employees very unattractive.
Although the French gave us the word ‘entrepreneur,’ it’s a wonder the term isn’t obsolete in French.
Reunification of the country has put a drag on economic growth.
The value of salt in ancient time was enormous.
Hayek wrote, “More harm and misery have been caused by men determined to use coercion to stamp out a moral evil than by men intent on doing evil.”
Italy reminds us that governmental solutions can be worse than private sector problems.
Hard work can’t always overcome Italian bureaucracy.
During 2002-2004, iShares of the ten economically freest countries outperformed the index by 5.43% each year.
Baring a real people’s revolution, it will take until 2050 for China to complete their slow march to free markets.
We find the Heritage study useful, both to refute other presidential candidate’s claims that governmental coercion will make us richer economically, and also to help us find those countries where investment actually would make us richer.
Each year since 1994 the Heritage Foundation has used a systematic, empirical measurement of economic freedom in countries throughout the world.
The amount of money involved in foreign aid is often large enough to politicize the economic life of a small country and lead to massive graft, corruption, and waste.
In the US we allow companies to go bankrupt when they cannot succeed in business.