The Berlin Wall was brought down because people were tired of wearing Bulgarian shoes; that’s the theory according to political satirist, P.J O’Rourke. In much the same way, the triumphant moment of Korean unification over the weekend, is largely driven by North Koreas inevitable drift into a free-market economy.
Following a fortnight where the media has beaten up the ‘gatekeepers’ of the global markets; those ‘gatekeepers’ being the banks, it’s nice to see a positive example of free markets playing out before our very eyes. North Korea is surprisingly entrepreneurial place (in some cases, entrepreneurship is a survival strategy) and people naturally look for ways to bring prosperity to themselves, their families and their community. This is how free markets are born. This is how stock markets are born. This is how your superannuation portfolio works!
The past two months have exemplified threats to the productivity of free markets; trade tariffs and the possibility of further regulation across the Australian banking sector. However, while some people get absorbed by ‘doom & gloom forecasters’, other people are busy coming up with prosperous solutions to big problems. The only way to be involved in that process is to be invested across a diversified, global market place.
Who knows, one day the North Korean Big Cap 200 might feature in your portfolio.
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Mark O’Toole CFP™