Libertarian-Style Investing Would Overweight Canada
Libertarians and economists both recognize that countries with more economic freedom experience higher GDP growth. That growth translates into higher stock returns for investors savvy enough to look for governmental fiscal restraint rather than government stimulus. The Heritage Foundation Index of Economic Freedom uses a systematic measurement of economic freedom to evaluate countries worldwide. Their conclusions clearly show that economic freedom and higher rates of long-term economic growth go together. Investors can use the study to select countries for their foreign stock allocation.