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Global Multi-Asset Bounce Back; US & Emerging Markets Stocks Have Led Global Equity Market Returns From March 2009 as Reflected by the Russell Indexes

Mar 18 2013 12:00AM

Marketwire

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SEATTLE, WA -- (Marketwire) -- 03/18/13 -- As another Federal Open Market Committee (FOMC) meeting approaches on March 19th-20th, many global equity markets continue to reach and surpass all-time highs as reflected in indexes measuring these markets. In the four years since March 2009, considered the height of the global financial crisis when many major global benchmarks including the Russell Indexes hit multi-year lows, U.S. stocks have helped drive the global equity market recovery, as demonstrated by the performance of the Russell 2000® Index, which returned 193.2% from March 9th, 2009 through March 15th, 2013 and the Russell 1000® Index which returned 156.3% for this same time period.

Emerging markets stocks placed second to U.S. stocks performance in this same time period, with a 151% total return from March 9th, 2009 through March 15th, 2013 for the Russell Emerging Markets Index.

Developed markets outside the U.S., while strong, have not fared as well in this same time period. The Russell Developed Europe Index returned 129.6%, the Russell Developed Europe ex-US Index returned 125%, and the Russell Eurozone Index returned 105.8% for this time period.

"In March 2009 markets had priced in 'end of the world' -- but the end of the world was indeed not nigh. The subsequent broad-based global equity market rally has seen the Russell 1000®, Russell 2000® and Russell 3000® Indexes recently retake all-time historical highs. To some degree, this recovery is an indicator of firming confidence in an (albeit maturing) earnings environment and a stabilizing global economy -- as this broad based rally has seen cyclically sensitive U.S. small caps outperform," said Stephen Wood, Chief Market Strategist at Russell Investments. "The breadth of global equity market index returns in the last four years helps reinforce the logic of taking a globally diversified, multi-asset approach to one's investment goals."


Russell Index Total Returns: March 9th, 2009 - March 15th, 2013 ----------------------------------------------------------------- Index Total Return: 3/9/09-3/15/13 ----------------------------------------------------------------- Russell 2000® Index 193.2% ----------------------------------------------------------------- Russell 1000® Index 156.3% ----------------------------------------------------------------- Russell Emerging Markets Index 151% ----------------------------------------------------------------- Russell Developed Europe Index 129.6% ----------------------------------------------------------------- Russell Developed ex-US Index 125% ----------------------------------------------------------------- Russell Eurozone Index 105.8% -----------------------------------------------------------------




Source: Russell Investments

Please note: Indexes are unmanaged and cannot be invested in directly. Returns represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment. Russell's publication of the Indexes or Index constituents in no way suggests or implies a representation or opinion by Russell as to the attractiveness of investing in a particular security. Inclusion of a security in an Index is not a promotion, sponsorship or endorsement of a security by Russell and Russell makes no representation, warranty or guarantee with respect to the performance of any security included in a Russell Index.

Returns provided are US dollar-denominated.

Opinions expressed by Mr. Wood reflect market performance and observations as of March 15th, 2013 and are subject to change at any time based on market or other conditions without notice. Past performance does not guarantee future performance

Nothing contained in this material is intended to constitute legal, tax, securities or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax and investment advice from a licensed professional. The information, analysis and opinions expressed herein are for general information only and are not intended to provide specific advice or recommendations for any individual entity.

Russell Investment Group is a Washington, USA corporation, which operates through subsidiaries worldwide, including Russell Investments, and is a subsidiary of The Northwestern Mutual Life Insurance Company.



Source: Marketwire