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Brandy Auterson-Hurst:
It’s now time for, For Your Money. We’re joined by John Nelson, Financial Advisor at NelsonCorp Wealth Management. Nice to see you, John.
John Nelson:
Thanks for having me, Brandy.
Brandy Auterson-Hurst:
So the US stock market has been a top performer for many years when comparing global markets. So what are you seeing in the rest of the world that is worth watching?
John Nelson:
Yes, it definitely has been. When you look at the US markets compared to emerging markets, say for the last decade, it hasn’t even been close. The US markets have absolutely dominated. People have looked for the emerging markets to kind of be a source for growth and had hoped to see that. And we did see a little bit of that through the pandemic. In 2020, emerging markets started to make a run there for a little while but by mid-2021, the US markets had recovered, bounce back significantly. The US dollar had increased fairly significantly and it was back to the US dominating.
The graphic I have here with me today looks at emerging markets. And it’s just comparing here when we look at the blue line, that’s the broad base emerging market index when compared to the red line, which is the emerging market index minus China. So China being removed from that, it’s been quite a drag to say the least here recently where without China factored into the situation, things look dramatically different.
Brandy Auterson-Hurst:
So how can viewers use this information to help with their own investment decisions?
John Nelson:
Yeah, I think just knowing what you own, broad-based indexes can be fantastic core type positions when an investor is trying to build out their portfolio. But looking at that and identifying that… Looking at individual countries and companies can really tilt things in a dramatic way. So knowing what you own and when to own it is really important.