Hot Countries

Hot Countries

Over the past three years, we’ve been using the same four countries as our value replacements, and for diversification. Some of the funds of these countries offer higher credit quality, lower debt and/or higher income than the United States. The question is: which countries are the best choice for 2026 and beyond? Have they changed?

Here are the topics I’ll cover in this blog.

The War in Iran and High Oil Prices
Which Countries are the Best for Diversification?
Why Do We Use Value Replacements for the Equity Income Slices?
GDP Growth
Credit Quality
Industries & Exports
2026 Hot Countries
U.S. Stocks are Sinking? Are These Countries Holding Up Better?


And here is additional information on each topic.

The War in Iran and High Oil Prices
Do wars lead to recessions? Is anything hot in a recession?

High gasoline and oil prices are highly correlated with recessions. If the current conflict in Iran is prolonged and oil prices remain high, this is negative for the entire world. It could lead to higher interest rates, lower GDP growth and strained finances for households and businesses. If the war is over quickly, then oil prices should fall and the world’s economies should stabilize. I remind everybody that our best protection against a correction or a recession is to always keep a percentage equal to our age safe. (Knowing what’s safe in a Debt World is just as important, which is why we spend one full day on this topic at our Financial Freedom Retreat.)
 
Consider overweighting safe when there are economic storms on the horizon. We are overweighting 20% additional safe for many reasons, which I’ll outline in my upcoming videoconferences and retreat. Liquidity is an important asset in tough times, when opportunities abound and buyers are in short supply.
 
I’m going to be discussing the War in Iran in my Thursday videoconference on March 26th. On April 2, I’ll discuss Hot Countries and Value Replacements. If you’d like to join me, please email [email protected] with Videocon in the subject line.
 
Which Countries are the Best for Diversification?
The Asian countries Indonesia and Vietnam rank high in GDP growth, productivity growth and low debt to GDP ratios. Ireland remains in the top five countries for GDP per capita, with economic strength in technology, AI, biotechnology and agriculture. The United States is a resilient, diversified economy with productivity growth and dominance in AI and technology. The country has a high debt to GDP ratio, but greater freedom and flexibility due to the dominance of the dollar as a world reserve currency. Australia and Peru are rich in natural resources and have lower debt to GDP ratios. Peru was our superstar in 2025. The iShares fund EPU almost doubled in 2025 (+83%), rising to $95/share (+132% year over year) on Feb. 27, 2026. (Click on the blue-highlighted words to learn more about each country.)

FYI: When I’m selecting the countries, I’m looking at more than ten data points, including productivity. Most of the countries mentioned above (except for Australia) have higher productivity rates.

Why Do We Use Value Replacements for the Equity Income Slices?
The countries listed above are rich in natural resources and thus offer a lot of the sectors that are missing from our growth funds. Many of the funds offer income, which is another desirable feature of our value funds. An added benefit is that some of the yields are much higher than a typical U.S. value fund yield. Australia offers more income with higher credit quality than the U.S. – a rare example of taking on less risk for more reward (considering debt and income). However, in the event of a prolonged war, which raises the risk of a recession, all equity stocks and funds are at risk of losses. (Again: overweighting safe is our best protection from a plunge in prices.)

GDP Growth
Worldwide, GDP growth is expected to slow down to 2.6-3.1% in 2026. Asia is still the outlier, with Indonesia projected to experience 4.9% GDP growth, 5.6% in Vietnam and 4.2% in China. It’s not easy to find a pure-play Vietnamese fund that is offered by a fund provider with high credit quality and liquidity. Below are the GDP expectations for the other Hot Countries featured in this blog, along with their Debt to GDP ratio.
 

The above are economic growth projections. The current wars mean that economic growth could slow down, or even contract. If gas and oil prices remain high, then the risk of a recession grows. Although analysts have projected that the S&P500 could rise to 7,600 in 2026, Goldman Sachs recently warned that a severe oil supply shock could cause the S&P500 to sink to 5,400 (-17.8% from March 19, 2026). AI forecasted that there is a 70% possibility of a correction (-10%) in 2026. The odds of a U.S. recession in 2026 are 25% (source: Goldman Sachs). When the U.S. sneezes, the rest of the world catches a cold.

Credit Quality
Our country selections are all rated investment grade. Vietnam is in the speculative category. The U.S. has the largest amount of debt compared to GDP. However, the U.S. is still the most widely used world reserve currency, with the most gold reserves by far. (I’ll be publishing a Gold/Silver blog soon. Email [email protected] if you’d like the current Top 10 Gold Holders List.) 
The countries in red have the lowest credit rating, including Peru and Indonesia. However, they also have higher GDP growth expectations and lower debt to GDP than the U.S. Keep reading for my country selections for 2026, and why.

2026 Hot Countries
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Industries & Exports
Each of the countries featured in this blog has their own unique niche.
Indonesia is the top exporter of nickel and the number one producer of palm oil. The country has plans to make EV batteries. Indonesia manufactures semiconductors, automobiles and shoes, and exports iron, steel, coal and natural gas. The economy is expected to grow at one of the fastest paces in the world.

Australia is a major global exporter of iron ore, coal, and lithium, accounting for over two-thirds of exports and around 6-10% of GDP. Household spending is the top driver of economic growth in Australia, as it is in the United States. When people can’t afford to buy gas, they pull back spending on everything. Australia typically has a higher interest rate than the U.S., with lower debt to GDP.
Ireland has the 3rd best GDP per capita and has become a major European hub for technology, biotechnology, AI and agricultural products.

Peru is benefiting from very high copper prices. The outlook continues for tight copper concentrate supply and high demand, a positive for the Peruvian economy and copper prices. However, a prolonged war could change the story, dramatically reducing industrial demand (car purchases, as one example), which would cause prices to plunge. This is something that can happen in a recession. Copper prices, referred to as Dr. Copper, often serve as a key indicator of economic health.

U.S. Stocks are Sinking? Are These Countries Holding Up Better?
As you can see in the chart below, we can add performance and income using hot slices (silver, clean energy) and country value replacement funds. Our capture gains strategy with 1-3 times a year rebalancing smooths out the volatility and keeps us on the right side of the trade. This is not day trading or an active plan. It’s simply employing a time-proven, age-appropriate, diversified system, and rebalancing once a year (or once a quarter) to keep it that way. Leaning into most of our country selections, growth funds and the hots has paid off far higher than just relying on the S&P500.

Source: MSN.com/money.

I reiterate that rebalancing our wealth plan now with an emphasis on capturing gains, while the funds of silver, Ireland and Peru (and many other equities) are still trading near all-time highs, is very important. As you can see many of our ten slices have far outperformed the S&P500 over the 3-year period – even given the recent pullback.

The safe side of our sample plan is earning a competitive income without any paper losses (for over two decades now).

For those who do not have exposure to these countries and hot industries, it’s important to develop a strategic dollar-cost-averaging plan. I discuss this at our Financial Freedom Retreat and in my private coaching.

Bottom Line
Capturing gains is an important part of our wealth plan because it means we get to keep and build our wealth. Stocks are volatile by nature. So rather than hoping that stocks only go up, it is important to have an exit strategy that makes sense. Our pie chart system, when used properly and rebalanced 1-3 times a year, does just that. It also takes the emotions out of the wealth plan, as irrational exuberance or alarm typically work against an efficacious plan.

If your wealth plan is down -5% or more on the year, you don’t have enough safe. A 60-year-old who is overweighting safe might earn gains in recessions, when most are at risk of losing half of their nest egg. As Nilo reported after the Great Recession:

My husband spoke with Natalie Pace, and after a brief discussion, she charted a plan on the back of a napkin. I decided to take her advice. Soon after, we had the big crash. I was one of the few and lucky people who actually made money (instead of losing). So, thank you Natalie, for saving my retirement!

Hot countries can increase performance and income. However, what soars can also sink. Rebalancing is important! We’ve been sending out countless emails since our Rebalancing Masterclass on Jan. 10, 2026, reminding everyone to capture gains. The high for the S&P500 was Jan. 28, 2026.

If you haven’t rebalanced your wealth plan within the last few months, now is a great time to make sure that you have an age-appropriate, properly diversified plan in place. If you are dollar-cost averaging into one or more of the hot countries mentioned in this blog, the reason for staggering our purchases is so that if prices fall, we are buying at a lower price instead of losing money. It’s very important to work on our emotional intelligence when it comes to investing, so that our emotions work with, rather than against, us.



Are you aware that the hot funds we've been featuring in our sample pie charts and retreats performed at the top of Wall Street in 2025? Silver tripled. Peru (copper) was on fire with over 100% gains. Even clean energy scored 55%... 

Why not treat yourself to the gift of financial freedom to create a New Year, New Me in 2026?
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Register now to join us at our online Financial Freedom Retreat April 24-26, 2026 where you'll learn how to protect your wealth, save thousands annually in your budget, invest in hot industries like AI, gold, crypto and more, and how to be in the best seat during our volatile Debt World. Register with friends and family to receive the best price. (Ask for access to a recording of our Real Estate, Bond or Rebalancing masterclass as our gift to you.) Email [email protected] to learn more and register now.

If you'd like a life-changing adventure of a lifetime, be our guest at a royal manor house in Cornwall, England, March 12-19, 2027. (With just eight rooms available, this exclusive, private, bucket-list adventure sells out a year in advance!) Call 310-430-2397 or email [email protected] to learn more. The 2025 Restormel Retreat was a magical and royal experience. Click to learn more. 

Request testimonials at [email protected]. You can also view some on the flyer page of the retreat. 

Learn how to:

* Invest in hot industries, such as cryptocurrency, Nvidia, artificial intelligence, and quantum computing,
* Save thousands annually with smarter big-ticket choices
* Hedge against a weaker dollar,
* Invest and compound your gains,
* Green your retirement plan,
* Easy and efficacious nest egg strategies,
* Get hot and diversified (including in artificial intelligence, quantum computing and crypto),
* Evaluate stocks,
* Avoid capital gains and financial predators,
* Keep an age-appropriate amount safe, and,
* Know what's safe in a Debt World.

Yes, it's a complete money makeover. 
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Email [email protected] or call 310-430-2397 to learn more and register. Learn the 15+ things you'll master and read testimonials in the flyer on the home page at NataliePace.com. ​

"Ten minutes into the first day I was already much smarter about investing than I ever thought I would be in my life and I knew I was in exactly the right place at this retreat. I am amazed at how EASY and FUN it is to make my money work for me and those I love. I think this kind of information should be compulsory in schools. I wish I'd learned this sooner." CM
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"Many people, including educated men and women, often get into trouble when they 
neglect to follow simple and fundamental rules of the type provided [by Natalie]. 
This is why I recommend them with enthusiasm." 
Professor Gary S. Becker. Dr. Becker won the 1992 Nobel Prize in economics for his theories on human capital

"College students need this information before they get their first credit card. Young adults need it before they buy their first home. Empty nesters can use the information to downsize to a sustainable lifestyle, before they get into trouble." 
Joe Moglia, former Chairman & CEO, TD AMERITRADE.


If you’d like an unbiased 2nd opinion on your current wealth plan, email [email protected] for pricing and information.

Click through to the flyer to learn more. Call 310-430-2397 or email [email protected] for pricing, additional information and to register. Register with friends and family to receive the best price. Teens and college students can attend for just $99.

Join us for our Restormel Royal Immersive Adventure Retreat. Spring Equinox 2027. Email [email protected] to learn more. Click for testimonials, pricing, hours & details. Register now to receive the best price, the best room and four private, prosperity coaching sessions. There are only 6 rooms available. This retreat includes an all-access pass to all of our online training for a full year for two. Considering the perks, you're receiving a 65% discount to learn the life math that we all should have received in high school, and the room is free! Email [email protected] to learn more. The best rooms at the 2025 retreat were sold out in 2024! Yes, it's a great idea to register and start transforming our lives now.

Natalie Wynne Pace is an Advocate for Sustainability Financial Literacy & Women's Empowerment. Natalie is the bestselling author of The ABCs of Money (6th edition) and The Power of 8 Billion: It's Up to Us, and is the co-creator of the Earth Gratitude Project. She has been ranked as a No. 1 stock picker, above over 835 A-list pundits, by an independent tracking agency (TipsTraders). Her book The ABCs of Money remained at or near the #1 Investing Basics e-book on Amazon for over 3 years (in its vertical), with over 120,000 downloads and a mean 5-star ranking. The 6th edition of The ABCs of Money and the 2nd edition of The ABCs of Money for College are the most recent releases of these books. Follow her on Instagram. 
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Natalie Pace's easy as a pie chart nest egg strategies earned gains in the last two recessions and have outperformed the bull markets in between. That is why her Investor Educational Retreats, books and private coaching are enthusiastically recommended by Nobel Prize winning economist Gary S. Becker, TD AMERITRADE chairman Joe Moglia, Kay Koplovitz and many Main Street investors who have transformed their lives using her Thrive Budget and investing strategies. Click to view a video testimonial from Nilo Bolden.​​

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Check out Natalie Pace's Substack podcast and watch videoconferences and webinars on Youtube.

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Important Disclaimers
Please note: Natalie Pace does not act or operate like a broker. She reports on financial news, and is one of the most trusted sources of financial literacy, education and forensic analysis in the world. Natalie Pace educates and informs individual investors to give investors a competitive edge in their personal decision-making. Any publicly-traded companies, funds or projects mentioned by Natalie Pace are not intended to be buy or sell recommendations.

ALWAYS do your research and consult an experienced, reputable financial professional before buying or selling any security, and consider your long-term goals and strategies. Investors should NOT be all in on any asset class or individual stocks. Your retirement plan should reflect an age-appropriate, diversified wealth plan, which has been designed strategically, with the assistance of financial professionals who are familiar with your goals, risk tolerance, tax needs and more. The "trading" portion of your portfolio should be a very small part of your investment strategy, and the amount of money you invest into individual companies should never be greater than your experience, wisdom, knowledge, patience and diversified strategy.  
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Information has been obtained from sources believed to be reliable. However, NataliePace.com does not warrant its completeness or accuracy. Opinions constitute our judgment as of the date of this publication and are subject to change without notice. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument.