Disclaimer. After nearly 40 years managing money for some of the largest life offices and investment managers in the world, I think I have something to offer. These days I'm retired, and I can't by law give you advice. While I do make mistakes, I try hard to do my analysis thoroughly, and to make sure my data are correct (old habits die hard!) Also, don't ask me why I called it "Volewica". It's too late, now.
BTW, clicking on most charts will produce the original-sized, i.e., bigger version.
Sunday, August 26, 2012
Old vs New G7
That was the old G7. The new G7, the 7 largest economies now, is still headed by the US, though its weight has fallen a lot, but the membership of the club has changed a lot. Now the other six are (in order of size) China, Japan, India, Germany, UK & Russia.
Just look at this chart. The new G7 fell by less than the old, and has recovered faster after the GFC.
Yes, Europe is in the doldrums (failed economic models take a bow), yes the US is struggling to grow, and yes, if you focus on things as they were, the outlook appears bleak. But if you look at what is really happening, the world is still growing. Despite the headlines. And if Europe would ditch its unseemly passion for fiscal austerity, you might even see growth there too.