Stock Market Performance : Developed and Emerging Markets
Oceniono stan amerykańskich rynków finansowych tuż przed wybuchem kryzysu finansowego.
The aim of this paper is to make a comparison of the performance of developed stock markets and emerging stock markets vs. US stock market. The analysis is conducted from US investor perspective. MŚCI indexes are used as a proxy of each stock market. Comparison of single market indexes as well as multi-country indexes is made. Investment in multi-country index leads to significant reduction in risk as compared to investment in an average market the index consists of. In 70s, 80s and until mid 90s US market index was outperformed by both world and developed market multi-country indexes, whereas more recently US market seems to outperform these indexes and most of single country indexes. One explanation could be that since markets are getting more integrated and globalize then investments in US stock market can bring benefits previously related to international diversification. (original abstract)
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