How Should We Rank The World?

Maybe you wonder as you peruse the global news headlines with your morning coffee:  “What really IS inside my international investments, anyway?”  Or “Did Turkey’s stock market really go up by 252% in 1999?” Okay, maybe that’s a stretch and you’re not wondering about that.  While we certainly hope that’s not on your mind, we do think it’s interesting to peek into the world of our investments and point out the messy truths of international diversification–especially with this area of portfolios doing very well as we head to the end of the first half of the year.

Let’s expand on last month’s post (here), where we reviewed the size (market cap) of markets worldwide.  What if we could see the last 20 years’ annual performance, in order, for 41 various countries across the globe?  More importantly, what can we learn from it?  The picture below ranks the annual stock market performance for developed global markets (from highest to lowest) over the last 20 years:

Click here to view an enlarged image

What can we take away from an image like this, to help us to be better investors?   > SEE MORE

Pete Dixon, CFP®

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Pete Dixon, CFP®

Partner and Advisor