Chart o’ the Day: No, it’s not all tech stocks

The US stock market has absolutely creamed international stock markets in the post-crisis recovery – at a rate of 2.5 to 1 by some measures.

This has led to a popular misconception that it was the US indices’ weighting toward a few giant technology stocks that happened to have done really well (tech represents 25% of the S&P 500 but just 12% of the MSCI All Country World Index).

JP Morgan Asset Management begs to differ. I’m making their chart of the week my chart of the day today.

Below, you’ll see that the outperformance of US stocks vs international stocks even when we strip tech stock exposure out of both indices:

Some investors wonder if without technology, this outperformance would still exist. As shown in this week’s chart, the answer is yes – removing tech from both indices leads the performance differential to narrow, but still points to U.S. outperformance. Furthermore, the S&P 500’s robust performance excluding tech highlights that this bull market has been about more than a single sector.


Weekly Market Recap
JP Morgan Asset Management – April 9th, 2018

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