International Travels and Markets

My wife, Kathy, and I recently returned from a 46th wedding anniversary trip to Europe. We went with three of Kathy’s siblings and their spouses. While we all had a lot of fun, I also asked many questions about the economy of each country we visited. We flew into the airport in Frankfurt, Germany on our way to Prague, the Czech Republic. The Frankfurt airport was busy but also old and in need of updating and remodeling. The Airbus 300 jet we boarded for a hop over to Prague was also old and in need of updating. The Prague airport was quite small and almost vacant. It was clean and well organized, unlike Frankfurt’s airport. The Hilton hotel where we stayed in Prague was beautiful and modern. It also was very well kept and organized. The Czech economy seemed to be vibrant and healthy. In 1989, Czechoslovakia (the Czech Republic + Slovakia) had the “Velvet Revolution” in which they broke away from the Soviet Union and Russia. They had to completely shift their economy from communism to European socialism. After a couple of days touring Prague, we boarded a Viking long boat in Passau, Germany. We sailed to Vienna, Austria. Vienna was very upscale and beautiful. Austria is a rich country especially compared to our next port of call Budapest, Hungary. My grandfather’s last name was “Kovacs” (Czech) or “Kovach” (Hungarian), both meaning Blacksmith in their respective languages. When he immigrated to the US, his last name was Americanized to ‘Smith’. My father claimed to be Hungarian before he died, but I am not sure as the country boundaries moved many times between the Czech Republic and Hungary. Regardless, I was not impressed with the Hungarian economy and politics. Hungary has had the same Prime Minister, Viktor Orban, for 15 years even though there might have been term limits in the past. Also, Orban has sided with Russia in its war against Ukraine, and Orban has not diversified Hungary’s energy sources. A majority of their energy resources come from natural gas from Russia. When I asked a tourist guide about why Russia has natural gas, the reply was “we have no choice.” However, France and other European countries have diversified into nuclear energy. Further, Hungary, like other European countries, has socialized healthcare. If you have a heart attack, according to a local, it may take days before you are attended to. If you need a knee or hip replacement, the same local said it will take months. I would not invest in Hungary, as government corruption is also a concern. However, other countries below would be good to invest in:

Best International Markets for American Investors:

India

• Why it’s attractive: High GDP growth(~6.5%+), stable political leadership, strong consumer demand, and a thriving tech/manufacturing sector.

• Currency note: The rupee has remained relatively stable vs. the USD; potential upside as India gains more weight in global indices.

• Geopolitics: Strong U.S.-India ties, less exposure to global conflict zones, and active courtship of foreign direct investment

Mexico

• Why it’s attractive: Nearshoring boom (especially from U.S. firms shifting from China), competitive labor costs, and improved trade efficiency under USMCA.

• Currency note: The peso has strengthened modestly against the dollar; volatility remains low due to rate stability and growing foreign reserves.

• Geopolitics: Benefiting from U.S.-China tensions; proximity and policy coordination with the U.S. add resilience.

Brazil

• Why it’s attractive: Commodity rebound (especially agriculture and minerals), improving inflation picture, and a dovish central bank spurring growth.

• Currency note: The real has been volatile but is appreciating gradually with stronger capital inflows.

• Geopolitics: Relatively insulated from global conflicts, and currently a safe haven for emerging market investors seeking high yields.

Vietnam

• Why it’s attractive: Manufacturing hub increasingly replacing China, youthful labor force, and strong FDI(Foreign Direct Investment) flows.

• Currency note: The dong (VND) is relatively stable against the dollar; managed float system limits wild swings.

• Geopolitics: Politically stable and quietly benefitting from U.S.-China decoupling.

  
  

​Riskier International Markets

China

• Why it’s risky: Slowdown in consumer demand, high youth unemployment, opaque real estate sector issues, and regulatory unpredictability.

• Currency note: Yuan remains weak against the dollar; PBOC intervention limits market clarity.

• Geopolitics: Heightened U.S.-China tensions, Taiwan strait risk, and trade barriers dampen U.S. investor enthusiasm.

Russia

• Why it’s risky: Ongoing geopolitical isolation, sanctions, war-related volatility, and weak institutional transparency.

• Currency note: The ruble is deeply unstable and largely inaccessible through U.S. financial channels.

• Geopolitics: Ongoing conflict in Ukraine and sanctions continue to choke investment routes.

Turkey

• Why it’s risky: Persistent inflation (~40%+), unconventional monetary policy, and political volatility.

• Currency note: The lira has depreciated sharply; extreme currency risk unless fully hedged.

Geopolitics: Regional instability and strained NATO/EU relations add uncertainty.

Argentina

• Why it’s risky: Capital controls, high inflation(>100%), and IMF(International Monetary Fund) dependency.

• Currency note: Peso is in free fall; parallel markets complicate foreign exchange.