| The first half of 2010 has been a
roller coaster ride in global equity
markets. The S&P 500 Index and
MSCI All Country World Index
posted gains of 5.4% and 3.2%,
respectively, in the first quarter.
But, as we’ve been suggesting for
some months, the consequences of
a global addiction to debt-financed
consumption—sovereign, corporate,
and household—started to take their
toll in the second quarter, with the
S&P 500 declining 11.4% and the
MSCI All Country World falling
12.0% in U.S. dollar terms. Adding
to this ride, value and growth styles
have been flip-flopping in past
years. If the current narrow value
outperformance experienced in
the first half of the year holds, 2010
will mark the fifth straight calendar
year in which style leadership has
shifted between growth and value. read more
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