No one knows what’s coming, but as we write, the view looks pretty good. In fact, it’s downright amazing. Of course, seeing what looks like near perfection requires a rear-view mirror. If we choose that bias, ours is a golden moment. Let’s bask in it, fully aware that it may or may not offer clues for what awaits.
Year to date, through Friday, October 5, Latin America glitters brightest of all if we carve up the planet’s equity markets by the familiar labels. Advancing 49% in total return dollar terms is the standard by which most other carvings fall short, as our table below shows. Of course, “falling short” still looks pretty good for the most part in absolute terms. (All numbers throughout are courtesy of S&P/Citigroup Global Equity Indices.)
Meanwhile, the sick man of the equity markets within the developed world this year surely goes to Japan, which has advanced by less than 2% YTD. If this is the best the world’s second-largest economy can muster in a stellar investment year such as 2007, one might wonder what’s the outlook when times turn tougher?