The US Stock Market Looks Pretty Average If You Compare it to the Rest of the World

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The Wall Street Journal reports that although US stocks are doing well, world stocks are doing even better:

Several major stock indexes that exclude U.S. stocks are on pace to best the S&P 500 for the first time since 2012, according to Morningstar. It’s a trend that’s playing out in both developed and emerging markets….The Vanguard Total World Stock Index Fund, which owns global stocks, including the U.S., is up 7.5% and is so far on pace to top the S&P 500 by the widest margin since 2009.

Sure enough, the S&P 500 (in blue) is doing worse than three different Vanguard ETFs that track non-US stocks:

A word of warning, though: I had to cherry pick the starting date pretty carefully to get this view. Starting dates that differ by even a few days produce a much tighter cluster. And most of the S&P’s performance woes are due solely to a lackluster March.

Still, the Vanguard All-World ETF (in green) has been consistently better all along by a fair margin over the S&P 500. Generally speaking, it’s fair to say there’s nothing special about the American stock market surge over the past few months. It’s just riding along with the rest of the world.

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DEMOCRACY DOES NOT EXIST...

without free and fair elections, a vigorous free press, and engaged citizens to reclaim power from those who abuse it.

In this election year unlike any other—against a backdrop of a pandemic, an economic crisis, racial reckoning, and so much daily crazy—Mother Jones' journalism is driven by one simple question: Will America will move closer to, or further from, justice and equity in the years to come?

If you're able to, please join us in this mission with a donation today. Our reporting right now is focused on voting rights and election security, corruption, disinformation, racial and gender equity, and the climate crisis. We can’t do it without the support of readers like you, and we need to give it everything we've got between now and November. Thank you.

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