Comment by mothballed
8 hours ago
Monarchists-esque governments arguably have a stronger incentive to preserve and generate wealth than elected officials, so it's not really a given that a dictatorship style government would be bad for equities.
Take a look at Dubai, for instance.
The UAE, Kuwait, Qatar, Oman and Saudi monarchies, all around 10x higher GDP per capita than Arab non-monarchies Egypt, Lebanon and Yemen. The exception being Jordan, an Arab monarchy that still manages to be relatively poor.
Are you normalizing by oil per capita?
Holy confounded variables, Batman! You're measuring oil wealth, not government organization.
And at least arguably, the causality goes the other way: restless populations in poorer nations are more likely to drive democratic reforms, where wealthy folks tend not to rock the boat.