Trading opportunities including fundamentals, technical analysis, and news or event-related items.

Tiger Cub Economies Part 4: Tourism And Sentiment

This is the final installment of a 4-part series examining the 5 Tiger Cub Economies, and the fundamental factors used to determine the best country ETF to invest in. Part 1 covered demographics and the middle income trap. Part 2 explored the effect of lower energy prices, financial market disruptions, ongoing slowdown in China and US protectionism. Part 3 examined fiscal and monetary policy, plus manufacturing PMI. Part 4 will touch on tourism and sentiment, and provide a wrap-up for this series.

Tourism - the Effects of Political Instability and Terrorism

Tourism is a very important part of in the Philippines economy, accounting for 14% of total import expenditures. Compare this to Malaysia, the next highest on the list, at 5.57%. Tourism is great for the economy, but what happens when political stability or terrorism rears its ugly head?

There just so happens to be a political stability index and a terrorism index. The political stability index is produced by the World Bank, while the terrorism index is compiled by the Institute for Economics and Peace (IEP). This data makes my life a lot easier, as I don't have to make subjective calls on which country has the worst situation. Every one of the Tiger Cub economies has political issues.

Read more ...

by Steve Auger