Keep Your Enthusiasm Curbed
Last month was one for the record books, at least in the new century. The S&P 500 returned 4.48%, the Nasdaq-100 rose 8.38%, and the Russell 2000 gained 7.06%. Investors willing to take on additional expected risk were greatly rewarded, as the Brazilian Bovespa surged more than 11% and a strong real advanced 6.3% against the U.S. dollar. Investors in the MSCI Brazil ETF (EWZ) scored a total return of 14.3%.
Only the power of the most recent surge has come as a surprise since markets were severely oversold around Thanksgiving, a period that ushers in the strongest upside seasonality in U.S. equity markets. Given the historically high correlation between global equity markets, it was a good bet that whatever was good for U.S. stocks would also be good for global stock prices --and so it came to pass....623 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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