In a year of uncertainty that included a
recalcitrant North Korea, Britain's continued exit from the European
Union, multiple terrorist attacks, and global populist uprisings, to say
2017 was a turbulent year is a bit of an understatement—except, that
is, in stock markets. World stocks, as measured by the MSCI All-Country
World Index have risen every month this year, so far. In fact, they
haven't had a negative return since October of 2016. As shown by the
following graphic, if they were to finish December in the green, it
would represent the first year ever without a single monthly
decline. And the odds are good for the record continuing, with a
positive December so far and just 4 trading days to go.
Womack Weekly Commentary September 18, 2017 The Markets “In theory, there is no difference between theory and practice, in practice there is.” Yogi Berra was talking about baseball, but the concept also applies to diversification, according to the GMO White Paper, The S&P 500: Just Say No . From the title, you might think the authors – Matt Kadnar and James Montier – don’t like U.S. stocks. They do: “Being a U.S. equity investor over the past several years has felt glorious. The S&P 500 has trounced the competition provided by other major developed and emerging equity markets. Over the last 7 years, the S&P is up 173 percent (15 percent annualized in nominal terms) versus MSCI EAFE (in USD terms), which is up 71 percent (8 percent annualized), and poor MSCI Emerging, which is up only 30 percent (4 percent annualized). Every dollar invested in the S&P has compounded into $2.72 versus MSCI EAFE’s $1.70 and MSCI Emerging’s $1.30.” The au...
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