Democracy and stock market return (paper)

[Spekulatius]

I mentioned before (in the China thread) the fact that autocracies tend to have lower stock market returns than democracies as I seeing a paper cited by @Packer16 on twitter. Anyways, here is the abstract with a link to download.

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3198561

 

It's a pretty dry paper with a lot of statistical analysis, but the gist of it seems to be that if you invest in a stock market governed by an autocracy, you are taking a risk that you don't get paid for generally. That does not mean that you can't get good results in some cases.

 

Might be worth discussing, but in any case, I felt it worth putting out here. I also think it's worthwhile following Keith / packer16 on twitter:

https://twitter.com/Bonhoeffer_KDS

 

Democracy and stock market returns.pdf