Lesson 24: Investing in a Global Economy
Review:
- Mortgage Crisis in the US
- Course evaluations
- Final Exam
- Review topics
- World Geography
- Guns, Germs & Steel
- World War II and 20th Century Europe
- European Union
- Oil Prices and Putin’s Russia
- History of Oil and Conflict in the Middle East
- War in Syria and resulting refugee crisis
- Saudi Aramco
- Population Growth in India
- China’s dramatic economic rise
- Japan’s “lost decades”
- Trans-Pacific Partnership
- Natural resource extraction in South America
- Lithium Triangle
- US foreign policy in Central America during Cold War
- Mexico’s Drug Cartels
- Mortgage Crisis in the US (2008-2009)
- Review topics
Presentation:
- What is the outlook for the world 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
- Displaced workers (Economist PDF)
- Debt
- Nationalism
- Corruption
- Environmental degradation
- All investing is value investing (otherwise, it’s speculation)
- Buy solid businesses at discount prices
- Most publicly traded companies are overvalued
- Most US real estate is selling at retail prices (very few discounts)
- 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
- Currencies may be a wild ride
- Who to listen to
Assignment:
- Study for Final Exam
- Thank you for being a great class!
