Where is your money in 2012?

BRIC stock markets compared to S&P 500, year to date peformance as of March 27th 2012

I think we all know the routine by now: Bernanke speaks and the stock market reacts. And expectations are starting to increase that The Fed will once again pump money into the US economy, perhaps as soon as next month.

Given rumours of stimulus (not the mention, prior rounds of stimulus), how are the US markets doing compared other markets? The chart above show the year to date performance of the S&P 500 (up 12.15%) compared to the Russian (TS, up 25.51%), Brazilian (Bovespa, up 17.5%), Indian (Sensex, up 9.71%) and Shanghai Composite (up 8.15%) – the BRIC economies, in other words. Seems like the American markets are lagging not leading, when compared to other investment alternatives.

So is this real market performance or the well known window dressing fund managers routinely engage in as end of quarter approaches? Given Bernanke’s predilection towards QE 3 and rumours of European QE 3, I still like gold & silver. And foreign (i.e., non American) equity markets.

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