Honesty Still Counts for Stock Market Performance
Good governments make for good equity returns.
Five Years Ago
In summer 2013, I wrote “Honesty Did Pay.”
That article pointed out that while portfolio managers typically cited either growth opportunities or cheap prices as reasons for buying a country’s equities, there were other important factors. Examples included political stability, how shareholders were treated, and currency strength. Presumably, also, clean governance. One would think that honest officials are good for business.