1H16 Equity Performance Summary
by Eric Bush of GaveKal Capital,
On a median basis, the emerging market has performed much better than the developed market in the first six months of 2016. Here are some highlights:
- The median EM equity in Latin/South America was up over 17% compared to the median stock in DM EMEA which was down over 5%.
- The median stock in Peru, Brazil and Colombia were all at least 30% higher so far this year. Greece was a major outlier in the emerging world as the median stock in Greece was down over 33%.
- We saw a rebound in the commodity currency countries equity markets in the developed world as Canada, New Zealand and Australia were the first, second and fifth best performing countries in the first six months. The worst eight performing countries all came from Europe with the median stock in Italy falling into a bear market.
- The energy sector had the best performance in both the developed and emerging world and were the second best performing sector in the United States. Utilities had the best median performance in the US.
- Banks were pummeled in the developed markets as the median bank stock was down over 21%, however, EM banks were up slightly. Pharma and biotech takes the award for the worst performing industry group in the US.
***All returns are in USD