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Perhaps passive investing in the US market is a bet on the overall health of the US market system. You wouldn't want to do the same in an alternative market jud
by b_emery 10y ago
Perhaps passive investing in the US market is a bet on the overall health of the US market system. You wouldn't want to do the same in an alternative market judged to be less 'healthy' or 'functional'. The Japanese market economy is still recovering from a culture of inefficient capital allocation (allocation based on social network ties for example). Cultural changes take a long time.
- galdosdi 10y agoNot perhaps. That's exactly what it is (OK, with with the huge caveat that it only represents the _publicly_ traded companies component of the economy -- but they are correlated) This is why people with money in the market care (or should care) a lot about GDP predictions.