Home Logon FTA Investment Managers Blog Subscribe About Us Contact Us

Search by Ticker, Keyword or CUSIP       
 
 
 
Blog Home
Bob Carey
Chief Market Strategist
Bio
X •  LinkedIn
 

  A Global Snapshot Of Equity Returns Spanning The COVID-19 Pandemic
Posted Under: International-Global
Supporting Image for Blog Post

 
View from the Observation Deck  
  1. Today's blog post features the total return performance figures for the major global stock indices over four specific periods since the start of 2020.
  2. The first column of total returns in the table above indicates that, with the exception of the S&P SmallCap 600 Index, U.S. equities were outperforming their foreign counterparts prior to the peak in the S&P 500 Index on 2/19/20. 
  3. Due largely to the onset of coronavirus (COVID-19), a major shift in sentiment occurred after the close of trading on 2/19/20. The second column of total returns captures the depth of the sell-off in the stock market in the U.S. and abroad. 
  4. The S&P 500 Index actually crossed over into bear market territory (a 20% or more price decline from the most recent high) at the close of trading on 3/12/20. It only took 16 trading days, the fastest path to a bear market ever. The sell-off did not cease until 3/23/20. 
  5. The third column of total returns shows the rebound in progress. This includes the market (S&P 500 Index) dipping into bear market territory again, selling off 25.43% on a price-only basis (dividends not included) from its all-time closing high on 1/3/22 through its 2022 bottom on 10/12/22. U.S. equities significantly outperformed their foreign counterparts over that period.   
  6. The fourth column reflects the year-to-date total returns through 12/2/22. Latin America has benefitted from the rise in commodity prices in 2022, including oil.   
  7. The fifth column reflects the total returns since the start of 2020. The U.S. equity indices are dominating their foreign counterparts over this time period. 
  8. From 12/31/19-12/2/22, the U.S. dollar rose by 8.46% against a basket of major currencies, as measured by the U.S. Dollar Index (DXY), according to Bloomberg. The growth in the U.S. dollar has provided a drag on the performance of unhedged foreign securities held by U.S. investors over the period, in our opinion. 
  9. Foreign stocks look less expensive than U.S. equities based on their forward-looking price-to-earnings (P/E) ratios. Bloomberg's 2022 year-end P/E estimates for the major indices in the table are as follows (12/5/22): 18.16 (S&P 500); 13.20 (S&P MidCap 400); 14.35 (S&P SmallCap 600); 22.68 (Nasdaq 100); 12.06 (MSCI BIC); 11.60 (MSCI Emerging); 12.44 (MSCI Europe); 6.92 (MSCI EM Latin America); and 12.62 (MSCI World ex-U.S.).   
 
This chart is for illustrative purposes only and not indicative of any actual investment. The illustration excludes the effects of taxes and brokerage commissions and other expenses incurred when investing. Investors cannot invest directly in an index. The S&P 500 Index is an unmanaged index of 500 stocks used to measure large-cap U.S. stock market performance. The S&P MidCap 400 Index is a capitalization-weighted index that tracks the mid-range sector of the U.S. stock market. The S&P SmallCap 600 Index is a capitalization-weighted index that tracks U.S. stocks with a small market capitalization. The Nasdaq 100 Index includes 100 of the largest domestic and non-financial companies listed on The Nasdaq Stock Market based on market capitalization. The MSCI BIC Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of Brazil, India and China. The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets. The MSCI Europe Index is a free-float weighted index designed to measure the equity market performance of the developed markets in Europe. The MSCI Emerging Markets Latin America Index is a free-float weighted index that captures large and mid-cap representation across five emerging markets in Latin America. The MSCI World (ex U.S.) Index is a free-float weighted index designed to measure the equity market performance of developed markets. The U.S. Dollar Index (DXY) indicates the general international value of the dollar relative to a basket of major world currencies. 
 
Download a PDF of this post, please click here.
Posted on Tuesday, December 6, 2022 @ 10:43 AM • Post Link Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
Search Posts
MARKET ANALYSIS
Market Commentary and Analysis
Market Commentary Video
Monthly Talking Points
Quarterly Newsletter
Market Observations
Subscribe To Receive Email
 


 PREVIOUS POSTS
How Defensive Sectors Have Fared During Periods Of Elevated Inflation
S&P 500 Index Dividend Payout Profile
Some Perspective On The S&P 500 Index’s Dividend Yield
A Snapshot Of Bond Valuations
A Snapshot of Bond Yields
Worst-Performing S&P 500 Index Subsectors YTD (Thru 11/8)
Top-Performing S&P 500 Index Subsectors YTD (Thru 10/31)
S&P 500 Index Earnings & Revenue Growth Rate Estimates
A Snapshot of Growth vs. Value Investing
How Bonds Have Fared Since 8/4/20
Archive
Skip Navigation Links.
Search by Topic
Skip Navigation Links.

 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
Follow First Trust:  
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2024 All rights reserved.