- Positive demographics, strong economic growth, a good business environment, and relative cheapness is what you should look for when investing abroad.
- Australia has it, and on top of it, Australia offers a high dividend yield and a large potential currency tailwind.
- The ETF is highly skewed toward financials but a decent stock picker can find a few great picks on the Australian stock market.
Before investing in a country, I first like to check the demographics because it’s an easily predictable trend that has a huge impact in the long term.
Because demographics are a long-term trend, it’s usually shunned by most analysts, but a population that grows at 3% per year adds at least 30% to a country’s GDP over 10 years in comparison to a country without population growth (think some European countries). More →