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Fighting Cronyism With The Corruption ETF
Submitted by Daniel Drew via Dark-Bid.com,
It seems like there's an ETF for everything nowadays. From global warming ETFs to fertilizer ETFs, Wall Street has neatly packaged nearly every type of investment to attract your cash. One thing they forgot to package was corruption. Considering how they are already overflowing in it, perhaps they just took it for granted. However, for many investors, corruption is worth taking a second look.
It all started with a question: Does corruption hurt stock performance? To answer this, I looked at a list of country ETFs. Then I looked at the Corruption Perceptions Index provided by Transparency International.
Corruption Perceptions Heat Map
Countries with high rankings have less corruption, and countries with low rankings have higher corruption. I took the countries with a ranking of 80 or higher and placed them in a basket called the "Low Corruption Index." (Note: Neither the U.S. or the U.K. made the cut.) Then I took the countries with a ranking of 40 or lower and placed them in a basket called the "High Corruption Index." I looked at the 5-year returns of these country ETFs.
The Low Corruption Index had a return of 43.71% (dividends not included). It was led by Denmark, the least corrupt country, which gained 114%.
Low Corruption Index
The High Corruption Index had a return of 8.66% (dividends not included). The biggest drag was Russia, the most corrupt country, with a 34% loss.
High Corruption Index
A "Corruption ETF" could capitalize on this effect by going long the Low Corruption Index and shorting the High Corruption Index. An investor in the Corruption ETF would be fighting cronyism while making money - one of those rare situations in the stock market where the concept of the "honest dollar" still exists.
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Its a corrupt world out there sonny
Micro, inside of the US take your pick: XIV, XRT, SPY
When the rankings of perception meet the facts, it's clear that there are a lot of fucking sheep out there.
I'm giving Daniel a big 'ol 5-start rating on this article. Simple, short, enough math to prove the point, and a reasonably interesting investing idea.
My experience is that as soon as they see you have figured out how to profit from their corruption, they change the game and rules and reality.
So good luck.
is it even possible that places like iraq/afganistan/libya, where the U.S. has had it's evil hand these past years, are more corrupt than the U.S. itself?????? looking at this crap makes me wonder what red state think tank thought this shit up? there is not a red site on this map that the likes of knucklehead McCain would like to nuke right this very moment. the writer of this bullshit needs to bone up on zerohedge/com corruption exposure now. the boy in a bubble comes to mind.
Looking at that map, I assume it's not corruption if its official government policy.......
It's corruption Perception.
Too many sheeple in USSA results in low perception of corruption.
it's a relative scale, and if you think the US should be colored red, then you haven't done business in China
Oh, China is corrupt like fuck. It's more out in the open. Let me ask you, which is more corrupt? The incessant bribe culture, or lying to start a war? We try to keep our corruption in the shadows here in the US.
And I think it gets more complex than just simple "corrupt or not corrupt." I think that a lot of them know that there is far more corruption in the US, but they refuse to believe it because it scares them. They'll learn the difference between ignoring reality, and ignoring the consequences of ignoring reality.
Imagine how much of an economical advantage any locals would have had they transferred whatever money they had to a non-centrally controlled form? Of course, they would probably have to fight tooth and nail to protect / keep that wealth now, but if they can successfully do that they become the new upper class overnight.
Just some food for thought for all those in the 'developed' world.
Short US ETF. I am betting on the sheeple's ignorance, arrogant narcissism, and skill of corporate media to portay America as the Garden of Eden. The more corrupt we are, the more the media bullshit machine ramps up.
Case in point - the mild orange flavor of the USA in the map above when it should be flashing red like a TPP warning signal.
it's a relative scale, and if you think the US should be colored red, then you haven't done business in China
have you done any genius ?
I have done business in China and US corruption is as bad or worse. They are just not as good at covering it up as we are.
Wouldn't be a "Corruption Perception ETF" ?
You know, what with Perception being 9/10 of the ..., uh ....
Oh! -- wait a minute .... Law? Market? What?!
The USA has legalized corruption.
Therefore, while the idea is a good one, it is hard to plot a chart based on the perception of corruption.
It has been well established for decades that corruption is a tax on economy activity.
But what if Central Banksters actually engage in corruption and secretly buy stock futures and stocks to create a wealth effect? What if they drive rates down to zero and even negative to encourage economic activity?
Corruption and fraud is the new unspoken economic mantra of the Central Banksters of the West. And the East has been emulating them very well.
Perhaps, the dark side of the moon is free from corruption.
Canada clean? So much consumer debt and housing fraud has been swept under the rug there by banks like TD, CIBC and Royal Bank. Ridiculous.
The country is awash in corruption at the highest levels.
To wit:
Massive spike in Toronto completed condos vacancies. Nearly 3000, compared to 1000 just a few months ago.
Off the charts compared to the last glut (1992).
https://www03.cmhc-schl.gc.ca/catalog/productDetail.cfm?lang=en&cat=100&...
Incy Wincy Spider.
Incy Wincy spider - Nursery Rhymes & Kids Songs - LearnEnglish ...
Your best bet? Go long companies with high credit ratings, low debt to income, and low to negative sales growth.
Low corruption countries = Where white people live
Way off the mark, Britain should be red hot.
There's already a corruption etf.
To buy shares, deposit money in a ziocabal bank savings account and watch them use your money to rape you and everyone else.
Fuck countries. Narrow it down to a map of cities.
As a bonus, you could also use it as a map of national capitals.
Miami should be Dark Black.
But in a manipulated market, the rate of return is an outcome of the corruption of that market. Aren't you maybe showing who is better at being corrupt with regard to their pretend markets...at best? Or what countries currently hold more currency/geopolitical leverage and can manipulate their markets more directly to produce perceived wealth as measured by a "rate of return"?
Another thing I noticed, as the following link will show, is that all but one of the so-called "low corruption" and "higher return" nations are also in the top 22 of the countries with the highest percentages of people 65 and older. None (that I saw) of the countries in the supposedly "high corruption" countries fall in that catagory. I think those kinds of demographics tell you a lot more about future economics than manipulated rates of return in modern fake "markets". My point is...don't go too long on this strategy as it's smoke and mirrors.
http://www.nationmaster.com/country-info/stats/People/Elderly-population...
The US is not solid red, is not totally corrupt? Are they kidding?
"low corruption" haha
these are human beings involved here folks
In the high corruption countries corruption is in your face. You need to buy for every kind of 'service'. Low corruption countries have 'old boys networks'.
Last time S&P lowered ratings for Satan America
and what Satan America did to S&P ...
Thats how western nations keep their heads up & make themselves as upright while they are diseased within.
They have legalized corruption in many ways so corruption does not show up .
For instance , cronyism, TBTF, fake nobel peace prizes (as to HomObamma) etc.
Western morality is fake, its exploitation in disguise.
Like a fox preaching chicken wearing grandma's clothing.
(but now chicken have started questioning "why your nose is so long?")
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Edit : Hey what about America & UK selling other countries' gold kept in Fed Reserve bank NY, in open market , that is the largest corruption & biggest robbery in the world.
And what about toppling governments in other countries & installing military personnel as heads of state , is it not corruption?
And what about American police looting cash from anyone in the street, there is no bigger state sponsered corruption than this. Even in the worst corrupt countries this does not happen. Why would police seize cash from its own citizens while they are walking on street. European countries invading poor african nations & mid east nations at the drop of hat. Western world's morality is totally fake.
And what about US looting gold from Ukraine, selling it to Iraq, taking their dollars, as well as keeping the gold while creating ISIS and toppling govt. Is it morality ?
Those who have assumed themselves as gods should know that retribution is near.
The last chapter of your book Bible is gonna be played and you will become the burnt offering to your own God / Yahweh/ Jehovah whatever. As your book says Jehovah loves the smell of of burning flesh & the blood sprinkled on it.
What God.