Top Ten Countries for Investing: Summer, 2015
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Bretton Woods (BWR), a research firm based in New Jersey, released a report in March 2015 detailing the countries with the best options for investors for the next three months. The report examined 46 nations and ranked them based on supply-side economic analysis principles. Thus, for those that do not subscribe to this particular school of economic thought, this warrants caution.
The top ten countries (according to BWR) are as follows:
10. Philippines
Bretton Woods (BWR), a research firm based in New Jersey, released a report in March 2015 detailing the countries with the best options for investors for the next three months. The report examined 46 nations and ranked them based on supply-side economic analysis principles. Thus, for those that do not subscribe to this particular school of economic thought, this warrants caution.
The top ten countries (according to BWR) are as follows:
10. Philippines
Despite the drop of oil prices since last June, the Philippine central bank has maintained its benchmark interest rate at 4% since September 2014, and has indicated that it will keep this rate for much of 2015. Inflation appears unlikely.
9. Hungary
The central bank of Hungary supports growth. The benchmark rate for the country is has held steady at 2.1% since July 2015. Inflation has been minimal in recent years, and even declined in December. The government is also predominantly pro-growth, and will announce relaxed banking standards that should take effect later this year, bringing the nation’s banking laws more in line with European Union standards.
8. U.S.A.
America remains the most powerful economy in the world, and several positive international developments should preserve the relative strength of the dollar.
7. Japan
The Japanese economy experienced a few bumps and bruises over the last decade, but it shows signs of improving. The government reduced corporate taxes to 32.11% in April, and announced further reductions for 2016. The prime minister has promised to drop the rate to at least 30% during his term, while others in the government have the more ambitious goal of 20%.
6. China
Although some fear China is heading into a recession following the slowdown of the construction industry, BWR has rated China sixth on its list. This comes from China’s reduction of its lending rate and cutting of its reserve ration by 50 points. Chinese government officials seek 7% economic growth in 2015, and most analysts believe this reasonable.
5. Germany
The European Central Bank’s policies favor German equity prices. Germany is also the strongest economy in the EU, and the government’s successful economic policies will not change in the foreseeable future.
4. Ireland
Ireland has been particularly bullish in its economic recovery. The nation’s fiscal policies show improvement, and it remains poised to avoid unfavorable measures like increases in individual rates of taxation.
3. Denmark
A number of investments in Denmark actually merit avoidance, such as bonds with negative yields. On the other hand, the corporate tax rate fell to 23.5% this year, and it will drop to 22% in the next. Similarly, personal taxes dropped from 56% to 52%.
2. Spain
Spain is likely to outperform any other Eurozone recovery nation in 2015. Corporate taxes dropped to 28%, and average personal taxes dropped from 56% to 47%. Expectations hold that these rates will drop again in 2016. More money in the pockets of Spaniards may lead to improved domestic spending and additional return on investments.
1. Portugal
Portugal has cleaned up its banking issues since 2014, and has greatly improved its fiscal policies. Like Spain, Portugal will be at the forefront of Eurozone recovery nations, and shows signs of immense improvement.
