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Home>UPDATE: Wall Street won't tell you, but U.S. stocks are underperforming

UPDATE: Wall Street won't tell you, but U.S. stocks are underperforming

UPDATE: Wall Street won't tell you, but U.S. stocks are underperforming

10/05/2017

By Brett Arends, MarketWatch

Overseas investors are doing much better this year

One of the smartest things you could have done with your money at the start of the year was to get it out of the USA.

American stock market indices have performed much worse than their overseas competitors so far in 2017. That's despite the hoopla over the gains in the headline U.S. indices.

Meanwhile the U.S. dollar has tumbled sharply against major -- and not-so-major -- international currencies as well.

The net result is that those who diversified their wealth internationally are... well, winning.

Yes, the S&P 500 (SPY) has risen 13.3% this year. But during the same time, developed international markets have risen 17.5% and emerging markets a staggering 27%. (That's according to the standard indexes used to measure both: the MSCI European, Australasian and Far Eastern or EAFE index of developed international markets, and the MSCI Emerging Markets index .)

MSCI Germany is up 22% and France 25%. Brazil is up 29% and China 45%. So far the U.S. is about in line with Japan, and with Great Britain, currently struggling with Brexit and political uncertainty.

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