Lesson 26: Investing in the 2020s Global Economy
Review:
- South Africa and Mandela
- Final Exam on Tue, Dec 13 at 10:30 in HSB 110
Presentation:
- Outlook for the global economy
- Bullish long-term (20+ years)
- Bearish short-term (5-10 years)
- Drivers of long-term growth
- Information technologies
- Medical technologies
- Globally integrated markets
- Emerging economies (India, East/Southeast Asia, Latin America)
- Demographic trends
- Barriers to long-term growth
- Automation =Displaced workers (Economist PDF)
- Sovereign Debt | Since 19th Century
- Nationalism
- Corruption
- Environmental degradation
- All investing is value investing (otherwise, it’s speculation)
- Buy solid businesses at discount prices
- Most publicly traded companies are (still) overvalued
- Most US real estate is selling at inflated prices
- Emerging markets
- Watch for major price reductions in healthy assets
- Reliable vehicles for wealth accumulation
- Rental property
- Productive land (farms, timber, mineral rights, water rights)
- Profitable businesses (that you own, not where you work)
- Dividend paying stocks
- It’s only an asset if it generates positive cash-flow
- Future of money
- Currencies may be a wild ride
- US Dollar
- British Pound
- Euro
- Renminbi (Chinese yuan)
- Japanese Yen
- IMF basket of reserve currencies
- Precious metals – as volatile as the currency used for pricing
- Gold, Silver, et al
- Cryptocurrencies
- rhymes with .com boom/bust in 1999-2000
- only one Amazon.com emerged
- bubble?
- Tough competition
- Currencies may be a wild ride
- Wealth
- Essentially, all legal contracts
- Except commodities (keep them in a safe place!)
- Old white dudes who seem to know what they’re talking about
Final Exam Review:
- Questions form previous exams
Assignment:
- Study for the Final Exam
