Global Markets Update: Monday, May 9, 2011

Over the past week, we've noticed the following trends in global markets:
  • Why is it important to invest in multiple asset classes?  One only needs to observe the action that's taken place in commodities over the past two weeks to understand.  A 9% drop in the CRB Index is painful if one isn't properly diversified.  At this point in time, international stocks are the top dog over the last one year, which you can see in the chart below.
  • Commodity-driven regions like Latin America and Eastern Europe were down nearly 5% last week.  However, Emerging Europe is still the best performer of world regions over the last one year.  Most developed international G7 countries were down over 3% last week, while the US was down about 1.7%.
  • Energy stocks took a big hit last week down 7%, and Basic Materials were down 3.8%.  On the other hand, Healthcare continued its relative strength by remaining flat last week.  It is now the leading sector for the year up 12.4%, overtaking Energy.

Click to view larger image.

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

Keith Hays & Justin Wood

Please see important disclosures at the bottom of this page.