I posted a disagreement with Mitt Romney’s blogging headquarters (Half Sigma, whose blogging I generally like, but I can’t resist some of his . . . excesses) a while back. Specifically, I objected to his assertion that elites don’t believe in HBD.
The only way to understand elite actions is by assuming that they believe in HBD. For example, why else would they live in enclaves of other elites safely separated from minorities?
HS responded, without linking to my post, by suggesting that you invest in Australia. How would that strategy have worked out? Comparing EWA (an ETF that covers Australia) with EZA (an ETF that covers South Africa), you find that . . . South Africa has done better, by quite a bit. The stability of countries like Australia is priced into its equities already. Investors pay a premium for investments in countries that follow the rule of law, etc.