This article in the economist talks about stocks for the long run. I have certainly had a great run with stocks as has Canada. But there are a lot of things that can kill stocks markets.
War and bankruptcies are the biggest items that can kill stocks markets. European countries (except UK) have a long history of bankruptcies. In fact most governments have had bankruptcies. It is much shorter to talk about countries that have not gone bankrupt, that is defaulted on bonds. These countries are the so called Anglo-Saxon countries of US, Canada, Australia and New Zealand. Also there is a Scandinavian country that has not gone bankrupt.
UK last defaulted on government bonds in the 12 century. New Zealand almost went bankrupt in 1979/1980, but was saved by an incoming Labour Party. I do not know remember which Scandinavian country that has never gone bankrupt. I tried to Google this but did not get anywhere.
I advocate equity investing as I live in Canada and this is very likely to turn out very well. I was also very lucky that I started to invest in the late 1970's and early 1980's. In the late 1970's interest rates were historically high. Equity markets took off in around 1982 and where great throughout the 1980's and 1990's.
I have read a lot of economic books including historical ones. I realize how lucky I am to have been born in a country like Canada.
On my other blog on Tuesday I wrote about Absolute Software Corporation (TSX-ABT, OTC-ALSWF)... learn more. Tomorrow, I will write about of Emera Inc. (TSX-EMA, OTC-EMRAF)... learn more on Friday, February 19, 2016.
Also, on my book blog I have put a review of the book Prisoners of Geography by Tim Marshall learn more...
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. Follow me on Twitter.