Even under normal circumstances globalization has made an isolationist approach to investing tantamount to financial suicide. With Europe in economic flames, China utterly inscrutable and everything in the Southern Hemisphere suddenly relevant it's prudent to take a cursory look around the globe to get our bearings.
Breakout invited Steve Wood, the Chief Market Strategist for Russell Investments to act as our tour guide for a 5-minute trip around the world.
As the Brits say, "Ready, steady, begin:"
Europe: "We're going to be talking about this next year, the year after that, and the year after that," says Wood. He's referring to the possible demise of the Euro, the defaulting of Greece, and the general fiscal anarchy threatening to break out over there. To be clear, when Wood predicts we'll be discussing this situation for years to come, he doesn't mean it in a good way.
According to Wood when the Euro was unleashed on the world in 1999 it was "more like a half complete aspirational product" than a sustainable currency. A brief lists of the problems includes the fact that there's no European Central Bank to actually dictate a coherent policy. As a method for "avoiding a world war every 20 years" as he colorfully outs it, the Eurozone has been a success. But as a financial collective, it's starting to show some cracks.Read More »from Going Abroad? A Guide to Investment Risk Around the World