During World War II, it was a common tactic of the Republic of China to nationalize the ownership positions of undesirable owners and turn their stock investments into $0 overnight while redistributing ownership interests between the Nationalist government and private citizen allies. This was a strategy advocated by Kung Hsiang-hsi (popularly known as Dr. H.H. Kung) to increase the likelihood of victory in the Second Sino-Japanese War. Since 2009, American stocks have performed exceptionally well, and the regular trumpet to invest in foreign stocks has been silenced in response to such extended American outperformance (of course, value investors would see this as a contrarian indicator and treat the underperformance of European stocks as an opportunity).
But for most of the early 2000s, you often heard the conventional wisdom suggest that American investors ought to invest in the Asian growth markets (that argument is not necessarily true—you could do more than … Read the rest of this article!