Cap-Weighted Indices Seem to Love National Debt

Posted by Vident Financial on 2/11/19 1:13 PM

While national debt is no longer the focus for pundits and politicians, it’s still a major concern for investors; nations with high debt tend to become nations with very high debt, and nations with very high debt tend to have financial crises. In a recent article, VisualCapitalist ranked the world’s economies by their debt-to-GDP ratios, from lowest to highest.

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Topics: Global Economics, Principles-Based Investing

Macron’s Macro-Economic Mistakes

Posted by Vident Financial on 12/27/18 12:38 PM

In the past month, France has been shaken by riots surrounding President Emmanuel Macron’s imposition of a fuel tax. The protests are sending French stocks through a lot turbulence; from the commencement of the protests on Nov. 17th , to the time of this writing, the French CAC40 index has fallen 5.38%. Macron’s concession on a key issue helped the market pick up some of their losses, but it wasn’t long before they were down again. Our international equity investment index, VIEQX, was able to avoid some of the negative effects of France’s crisis by having a relatively small investment weighting in the French stock market.

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Topics: Global Economics, resiliency

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