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How COVID19 can help us to decide which country to invest In

The COVID19 pandemic that currently remains has clearly revealed the world’s most fragile economies. We need to look at the charts of a country’s stock index and we have the answer where to invest. It is quite simple after the drop of March many economies were able to recover quickly, including by recording new historical peaks, but others have not been anywhere near recovering what has been lost since that month. This may be due to two factors:

  1. COVID19 has hit the country’s economy hard.
  2. The country has not been able to recover because COVID19 has brought to light the fragility of its economy.

Invest in the Asian and Oceania Economy?

Let’s see the main indices of Asia and Oceania such as: Japan, China, Hong Kong, India, South Korea and Australia.

We can see how 4 countries have recovered from the drop in February, surpassing the peak with more than 18% yield. Here it is worth mentioning South Korea with a recovery of more than 42%, being the most interesting country to invest, but in general, Asian countries demonstrate a healthy economy.

Invest in the European Economy?

We go to take a look at the indices of Europe such as: Germany, France, England, Italy, Spain and Switzerland.

In Europe, the situation is totally different. Only the German DAX was able to recover after 10 months, showing that Europe has serious economic problems. Spain is the worst of these, with a negative return of 16%.

Invest in the American Economy?

Let’s see the main indices of America such as: United States, Canada, Mexico, Brazil and Argentina.

In America, all the countries considered for the analysis were able to exceed the value lost in February 2020, with Argentina and the United States being the best performers.

In conclusion after a brief look at the charts, now Europe is not a place to invest apparently, they still have some hangovers from the financial crisis of 2008 and have not been able to fully recover. While the other countries are attractive for investment, South Korea being the most interesting of all. And this is not due to the severity of COVID19 in the different countries. Look at the USA, India and Brazil, the most affected by the virus have been able to recover the losses.

Author

Elliott Wave Forecast Team

Elliott Wave Forecast Team

ElliottWave-Forecast.com

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