Perspective: The MSCI World Equity Index is composed of:
So when we focus on US markets, we are focused on the largest (by a significant margin):
Our equity models try to incorporate this global diversity (although, when fully invested, we may likely be a little overweight in Canada because of our proximity to some of the companies that we like to watch). However, we do try to guard against an overly "home country bias".
So what is going on in some of these markets?
The World Index:
Markets in Europe and the UK are correcting, significantly, but only beginning to (at this point) in North America.
Japan has not yet begun to correct, Australia has also been correcting significantly.
We have remained (and still do) cautious about adding money to equity markets in our client portfolios and this strategy has been working.
We shall remain cautious, expecting that North America will follow the trend lower and ultimately Japan will as well.
Scott Tomenson,CIM Managing Partner, Chief Investment Strategist