FYI: The S&P 500 has outperformed the MSCI World Index each of the past three years and six out of the last eight. This is quite a run when you consider how often U.S. stocks have outperformed the rest of the world’s markets over historically.
Since 1970, on a calendar year basis the S&P 500 has outperformed 23 out of 46 years or 50% of the time. On a rolling three and five year basis it was also a dead heat at 50% for each. At the seven year interval the U.S. has outperformed 48% of the time. It looks like a coin flip to see which markets outperform over both shorter and longer time frames. The returns are also fairly similar with annual gains of 10.3% and 9.5%, respectively, for U.S. and foreign shares.
Regards,
Ted
http://awealthofcommonsense.com/when-diversification-works/
