Global Markets Update: Tuesday, January 3, 2012

How did global markets fare in 2011?  Here are a few of the things we have taken note of as we look forward to 2012.

  • A divergence of this magnitude doesn't happen often, but 2011 saw the MSCI US stock market basically flat, while The World x US was down over 16%.  Much of it came in the 4th quarter with the US markets up 11%.
  • The BRICs (Brazil, Russia, India and China) were all down more than 20% in 2011.  India was the worst down 38%.
  • What was the top performing country we follow in 2011?  Jamaica, mon - up 25.7%.
  • Dow stodgy, old stocks led the US markets (up 5.5%), a full 8% better than Mid Caps (S&P 400) in 2011, which made it a tough year for those buying quality growth companies.
  • It is never a good year when Utilities finish first (up 14.8%) and Consumer Staples second (up 10.5%).
  • Fixed Income and Real Estate where the leaders of the major asset classes in 2011, with International Stocks being the biggest loser (see chart below).

Click on the image above to view a larger chart.
Sources: HaysAdvisory.com & Thomson Reuters Datastream


Keith Hays & Justin Wood

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