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Investing in Communism: A Lost Cause
Investing in communist economies, particularly China, has proven detrimental for investors in the long run. Specific examples highlight that since China's takeover of Hong Kong in 2020, the market has dropped 50%, with consistent yearly losses. Even amidst GDP growth of 500% over 15 years, investments in China's major indices resulted in a loss of one-third of capital. In comparison, the US economy, with a 72% GDP growth and substantial market returns (340% for S&Ps), showcases the benefits of a stable economic system governed by the rule of law. These insights underline the futility of diversifying investments into communist nations, typically yielding only short-term gains followed by long-term losses.