Over the last ten years, capital markets have seen a lot happen! The global financial crisis, a downgrade from AAA of the United States, Eurozone political risk emerging, a commodity boom and crash, EM outperformance and underperformance, Chinese stock bubbles and burstings…the list goes on. Below, we chart the percentage price change in 22 major global equity indices relative to the MSCI World index, starting from Valentine’s Day 2007. Each index is priced in USD, so currency effects can change outcomes significantly. For each country, we’ve chosen broad benchmark indices which for the most part are representative of large cap stocks in that country. The charts might seem pretty small, so if you need to zoom in you can just click the picture for a bigger view.
You’ll notice when looking through the charts that the MSCI World index has outperformed most countries over the last ten years. The US has clearly been the main driver of performance since it makes up roughly 35% of world market cap and has tripled the performance of the MSCI World. China, Taiwan, and India are the only other countries that have outperformed the MSCI World by a meaningful amount.