Investing In The World

It's a big world with lots of investment opportunities. We continue to favor the United States, but it's hard to overweight the US when it already accounts for 64.7% of the market capitalization of the All Country World (ACW) MSCI (chart). That's up from a low of 42.0% in late 2009.

We can also observe the outperformance of the US by tracking the ratios of the US MSCI stock price index to the ACW ex-US MSCI stock price index in both local currency and in US dollars (chart). Both remain on solid uptrends even though the US has been a global underperformer so far this year, especially in dollars.