Global vs. Domestic Sector Performance

Global vs Domestic Sector Performance

ln the table at right, we highlight the year-to-date performance of the ten MSCI US and World Ex US sectors.  This highlights the difference between sector performance in the US and everywhere else in the World.  As shown, all sectors except for Financials have done better in the US than outside of the US this year, with both consumer sectors outperforming by the widest margin.  Consumer sectors are largely driven by domestic economics, so it says something about where the US stands versus other countries.  The Consumer Staples sector in the US is down just 1.37% year to date, while outside of the US, the sector is down 15.84%.  Aside from the consumer sectors, Industrials, Materials and Technology have also shown strong outperformance in the US.  Energy, Health Care and Utilities are about even.

Comments

[Philly Jim:]

The U.S. is still the safest bet for any real investment, financials will get over this hurdle - this has been a huge learning lesson for the young nation. This financial crisis is a very positive thing, businesses are now being forced to conduct their business more as professionals than speculators. We can only get better at what we do from here on. Good luck for those gambling on the third world disaster.

2008 Aug 19 10:10 PM

[User 143167:]

No matter the S&P500 is now trading at 26x PE while the world is trading at 12x. Really a safe place indeed.

2008 Aug 20 02:57 AM