Radio: Continue Avoiding “Ring-of-Fire” Countries

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On June 21, 2011, David John Marotta was interviewed on radio 1070 WINA‘s Schilling Show discussing foreign investing and which countries to avoid. David’s interview begins at 9 minutes, 5 seconds on the recording.

A year ago David Marotta wrote the column, “Avoid the ‘Ring-of-Fire’ Countries” that suggested readers should underweight investments in countries with a high debt and deficit and low economic freedom. That recommendation has proven brilliant. Given the dangers of worldwide sovereign debt, this may be one time when investors should continue to tilt foreign and toward specific countries.

Bill Gross, cofounder of the Pacific Investment Management Company (PIMCO) and the country’s most prominent bond expert, coined the term “ring of fire” to highlight the dangers associated with countries with high debt and deficit. The eight countries he identified were Japan, Italy, Greece, France, the United States, the United Kingdom, Ireland and Spain.

Listen to the audio here:

Photo by Tim Gouw on Unsplash

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President, CFP®, AIF®, AAMS®

David John Marotta is the Founder and President of Marotta Wealth Management. He played for the State Department chess team at age 11, graduated from Stanford, taught Computer and Information Science, and still loves math and strategy games. Favorite number: e (2.7182818...)