Time to Learn a Foreign Language
Source: IMF, MSCI and Todd Asset Management
Economic growth has been a reliable determinant of relative index performance. Over the past 25 years, accelerating international GDP growth relative to the US has been accompanied by international stocks outperforming their US counterparts, and visa-versa.
Evidence of globally synchronized growth is starting to emerge and IMF expectations are for international growth to reaccelerate for the first time since 2008.
Following roughly 9 years of underperformance we think a secular resurgence of international growth and stock performance is probably beginning.
This publication has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy, or investment product. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. Past performance does not provide any guarantee of future performance.