watchnerd wrote: ↑Tue Jan 21, 2020 5:04 pm
bck63 wrote: ↑Tue Jan 21, 2020 4:56 pm
Or France? France went on strike when they tried to institute a 35-work week. Not much much confidence there either, no.
I am NO economist. But I don't really see anything about European economies that make me think they'll do better than the US over the next century or so, which is longer than my lifetime.
It's not about the countries, per se.
It's just where the stocks happened to be domiciled.
Roche is HQ'ed in Switzerland. It's revenue stream is worldwide.
Airbus does not sell planes exclusively to Europe.
Toyota gets half of its revenue from the US.
True, but there are differences in management philosophy and culture between European, Japanese, and American companies, as well as differences in roles played by the government.
American companies have a stronger emphasis on maximizing share value. It is not quite like this in European companies which tend to have a broader view, and tend to take into account the impact of strategies on more stakeholders (such as employees). Overall, it seems like the American more brutal and shareholder-fixated approach is beneficial to shareholders (no surprise, really).
Japanese corporate management is also different, and there are even factors beyond that. For example, the Bank of Japan is actually the top shareholder there. This creates a distortion which doesn't exist in the US. It's distorting because their top investor isn't an investor who is chasing high returns. This ownership is used to serve other purposes like maintaining inflation at a certain level, and increasing stability.
In other words, you can't really view in a similar fashion US-listed companies and foreign-listed companies even if they're in the same industries and selling globally. There are pretty fundamental differences. Once you look at China, India, etc. the differences are even more stark, of course.