America vs the World

So many of us live in our own bubble, it's sometimes instructive to look outside and gain perspective. Yesterday's market rally may yet confirm many Americans' view that our markets are the best in the world, with all the suffering we are supposedly imposing on China and Presidential displeasure with European allies. Some also use our market to validate toxic politics and, more importantly, invalidate or mock the politics of our allies.

As is stated here many times, the politics are only a part of the economics of any nation, or, the world for that matter. So, as we look at recent price action, let's compare our returns with those of other nations.

Today's Wall Street Journal print version "Market Digest", clip below, shows year-to-date returns of major stock indexes worldwide. Of course, we can't buy stock indexes, we need tracking ETFs for that, but this is instructive in any case.

The US benchmark Standard & Poors 500 stock index closed Friday up 18.5% year-to-date. Without looking, does anyone want to guess which countries have closed HIGHER than the S&P? Here's the list culled from today's 10/12/19 Wall Street Journal Market Digest pictured above:

France CAC-40               +19.8%
Italy FTSE MIB              +21.0%
Sweden OMX Stkhlm    +18.8%
Switzerland Swiss Mkt   +18.8%
Germany DAX came in even at +18.5%

China, who is supposedly suffering under US Tariff threats is up 19.2%. And don't forget another dictatorship, Russia, up 24.7%.

Very different politics, very different countries, above, meet or beat America's benchmark. This should be instructive the next time we hear anyone who arrogantly and erroneously disparages our allies, dictatorships excepted. Admittedly, we could all do much better without belligerence and this tariff nonsense.

Feel free to post comments.

Disclaimer: Posts are for education only and not investment advice, may be subject to change without notice, and, while prepared with care, may be subject to omissions and errors.