which investment represents a nation's entire economy?
Let's say i believe country A has a good economy, but i believe it will have a higher GDP, and a more powerful better economy in the future.
How do I invest accordingly?
I was thinking of a real estate ETF, since real estate is an overall measure of the economy, however, interest rates play too much of a role.
any advise would be helpful
do you not know what GDP measures...............................
nothing is particularly great for this, imo the best is probably the overall stock market index one of warren buffetts heuristics for market valuation is the market cap/gdp ratio i guess this means roughly that total market cap should track gdp in the long run, barring valuation extremes
it looks like it roughly hovers around 100% for the long term for the US (but im unsure if it works as well for other countries) but this is probably less reliable now because more companies get their revenues fro overseas as opposed to their home countries (50% of sp500 revenue is from foreign countries)
http://www.ritholtz.com/blog/2010/05/market-cap-as-a-of-gdp-2/ http://pragcap.com/buffetts-favorite-valuation-metric-stocks-modestly-e…
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