It appears that the rest of the emerging markets have outperformed S&P500 enormously since the beginning of the year. What does that mean? One, that emerging markets have been unfairly whacked, i.e. oversold relative to the problems of the global economy. Two, the return of funds to emerging markets on valuation attractiveness. Three, some of these emerging markets may be recovering earlier and faster than the US. Four, the exports dependency factor has been magnified at the expense of domestic demand resilience.
Russia's RTS stock index was up another 3.2% today, while China was up 1.71% and India was up 2.3%. The BRIC (Brazil, Russia, India, China) countries continue to surge higher in 2009, as they've far outpaced stock markets of so-called "developed' countries. Below we highlight their year to date performance compared to the S&P 500. As shown, Russia is up a whopping 72.1% this year, followed by India at 51.6%, China at 44.6%, and Brazil at 39.7%. The S&P 500 is up 0.22%.
p/s photo: Meisa Kuroki
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