Expectations are driven by many things, but recent history usual tops the list when it comes to the crowd’s outlook on things to come. No wonder, then, that investors are feeling pretty good about the prospects for equity markets, which have been soaring this year.
As our chart below illustrates in no uncertain terms, 2009 ranks as one of the best calendar years in terms of positive returns…so far. The “worst” performer, based on our slicing and dicing of the major regions/markets for the world’s stocks, is Japan, dispensing a relatively slight 7.5% total return so far this year through August 21, according to data from Standard & Poor’s. On the opposite extreme is the nosebleed ascent for Latin America, which is up an astounding 71% year to date.
It’s been hard to lose money in equities this year. Virtually every corner of the global stock market is sitting on tidy gains. Along the way, claims of talent if not genius are once again being thrown about in the active management community, conveniently overlooking the fact that equity beta, which is available to everyone at virtually no cost, has delivered much of the heavy lifting this year.