America vs. The World

Weekly performance of the S&P 500 compared to MSCI World-ex USA, YTD, 2012

Something interesting: while looking at equity market performance, curiously, America has sharply outperformed. The chart above shows the year to date performance¬†of the S&P 500 ($SPX, black line) compared to the MSCI World Index ex-USA ($MSWORLD, red line). Year to date, the S&P 500 is up 12.40% while The World Index is up 6.53%. Clearly folks are reading lots into The Fed’s recent comments, while broader global equities are being impacted by uncertainty arising from the entire European “situation”. . The outperformance of America is even more pronounced if one look back at the previous one year (SPX 20.11% compared to MSWORLD 1.48%) and five years (SPX -4.45% compared to MSWORLD -28.77%).

All that good news aside, gold is hitting near term highs even as legendary investor Jim Rogers told Americans to prepare forfinancial armageddon. Meanwhile, Soros is selling banks and buying gold. As we used to say back on the farm, yeeee-haw!

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