World Stock Market Performance in 2011

Note: Above returns have been calculated by normalizing the value at 0% at the start of 2011.

Taking a peak at the Stock Market performance for the year 2011 gives us two intriguing facts, First that US markets have been outperforming for last two years when the businesses there have been showing bad signs and employment figures not anywhere convincing. Second that Asia(including Japan) as a basket has under performed in a  big way. 

A cue one can take from the markets is that US has probably had its fair share of returns due to its severe under performance at the time of recession and one can look at Asia given there share of under performance over the last two years. Bounce back from lows is a known fact and while picture is becoming rosy in US with good employment figures doing the rounds, it already priced in by the US markets.

A investor can now look at Japan and Asia in 2012 and expect good returns, while they are expected to under perform in the first 3 months to complete the bottoming out process, good returns can be expected from April on wards.