19 Countries in Fiscal Trouble; 10 in Good Shape

In four decades, Weiss has never seen anything like the dark clouds now encircling the so-called advanced economies of the world. We are drowning in debt that can’t possibly be repaid, but even after countless global summits, the “solution” is to pile on still more debt.

Investors need unbiased, accurate, meaningful data in order to make critical decisions that will affect their future, and Weiss offers up meticulously researched information for the weakest and strongest countries in the world.

The PIIGS countries are not the only ones in vulnerable to this massive debt crisis; also in trouble are the US, the UK, Canada, Japan and others. In fact, the finances of many East Asian and emerging market countries are in far better shape than those of most “advanced” countries.

The Weiss Ratings division evaluates the fiscal viability of countries around the world, and then assigns each one a rating. Unlike S&P, Moody’s and Fitch, Weiss accepts no compensation for ratings in any form, so their findings are unbiased.

Weiss’s actions plan for investors: First, seek to unload stocks and bonds that may be vulnerable to a debt collapse and recession in the countries receiving the lowest Weiss Ratings.

Second, if you are unable or unwilling to liquidate some of those assets, seek to hedge with bear investments—inverse ETFs or long-term put options that are designed to go up if your assets go down.

Third, diversify into to countries with the highest Weiss Ratings, even if they have traditionally been viewed as less advanced or less politically stable. The hard numbers show that those old precepts may be dead wrong.

Naturally, if global stock markets sink, these emerging markets are also bound to suffer a correction. But that will merely mean you can get an even better bargain.

Conclusion: The growing schism between weak “advanced” countries and strong emerging market economies opens up a profit opportunity in two ways—first, big bargains in the near term, and major growth opportunities thereafter.

To read Martin Weiss, PhD. article: 19 Countries in Fiscal Trouble; 10 in Good Shape

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Tagged as: Business, Canada, Developed country, Emerging markets, Exchange-traded fund, Japan, PIGS (economics), PIIGS