The Decoupling Continues -- In Reverse

Below we highlight the year to date returns of the major equity indices for a number of key countries.  Using prices from this morning, the United States' S&P 500 and Dow 30 are down much less than the rest of the countries analyzed.  China is down 27.7%, India is down 24.6%, Hong Kong is down 24% and Germany is down 21.7%.  Leading up to the peak in global equity markets last year, many people thought that countries were finally strong enough to decouple from the US and perform well even if the US went down the tubes.  These days, however, the US is the one doing the decoupling on the upside.

 

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Comments

[egghat]

But the Dollar has lot around 7% this year (which of course means the Euro has gained 7%). The Yen has even gained more.

For investors from Euro(pe) investments in Japan have performed better than investments in the US.

The US stock indices in Euros looks bad, really bad ...

[Dude]

Some of those markets haven't had a chance to react to the US market. You're immediately putting them at somewhat of a disadvantage since there was a large percentage change in the US market. Secondly, they have different betas so you can't just compare absolute returns. China is still up 33 percent from a year ago.