Global Markets Update: Monday, February 14, 2011

Over the past week, we've seen the following developments in global markets:
  • With all of the political unrest and inflation in Emerging Markets, we have seen a significant outperformance of Developed Markets.  The US alone is up 5.7% this year, while Emerging Markets are down 5.2%.  We believe in the long-term emerging story, but valuations in Developed Markets are currently more attractive.
  • Germany is the best performer and most stable economy of the G-7 Countries.  Russia is dominating the BRICs, and is the only BRIC that's up for 2011.  India is down over 15% this year.
  • After a strong week for mid and small caps, midcaps took the lead year to date, up 6.9% for 2011.  Energy and Industrials have been the top sectors this year, up more than 8% in 2011 alone.

Also, in the chart below, you can see how the US Style Boxes have performed over the past six months.

To view today's complete new and improved World Wrap, click here.

Keith Hays

Please see important disclosures at the bottom of this page.