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Over the past 15 years, the S&P 500 ($SPY) has demonstrated remarkable performance with a substantial total return of +361%, equivalent to an impressive annualized growth rate of 10.7%. In contrast, offshore stocks such as MSCI World ex-US ($ACWX) and MSCI Emerging Markets ($EEM) have shown comparatively modest gains of +58% (3.1% annualized) and +33% (1.9% annualized) respectively. This stark contrast in returns underscores the relatively lower risk and superior investment potential of US stocks, making them a more favorable choice compared to offshore stocks.

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Anonymous

Looks to me like that 361% is since 2012, so thats even better compounding. I thought the s&p looked expensive then lol

Anonymous

To me it looks more like the US market is highly inflated

Anonymous

So going back 15 years takes us to the crash of 2008/9. Not sure this is a fair point to use for this calculation.

Anonymous

Correct, but also cherry picking data. 1) Starts from 2008 when US stocks were very undervalued and ex-US over valued, ends now where US overvalued. 2) Big boost from US tech stocks... a tech empire over the world. That was the sweet spot. 3) When US future inflation expectations are high, ex-US outperforms the period +1 1/2 year delay. 4) China has excellent valuations now. / Also US outperformed because it was hyper-capitalist, biggest fish, hedgemony.

Anonymous

This is so obvious it is painful. ROW does not have the transparency, governance or track record of the US capital markets. In terms of risk/return the US markets are far superior (and will always be)...

Anonymous

Great chart! However a question, Shouldn’t we be playing according to where the puck is heading? IMO Asian markets are going to account for most of the growth in coming years. Isn’t it?

Anonymous

Past 5 yrs gold/silver have matched performance of s&p500/nasdaq

Anonymous

But this "growth rate" is just a factor of increase of money supply, so people holding S&P had no real growth, they just kept even with inflation. That is why you have to pick winners that out performs the S&P

Anonymous

Wow pretty amazing the disparity

Anonymous

both profitable

Anonymous

https://www.bogleheads.org/wiki/Frontier_market_stocks#/media/File%3AFrontiermarkets.jpg Check out this outdated map dividing the world into 4 segments. (Sub-frontier is the 4th.) I would argue that the USA is a separate 5th highest segment. Highly cool way to see the world! Only small part of world conrols the $ and companies that make the $, and that has been where to invest for the best returns (US).

Anonymous

We have to get AI and Crypto regulation right. If so, US innovation will outperform well into next decades.