International Stock Market Returns, Local Currency
1. The original post and graph were based on a recent NY Times article about the 5-year returns for foreign stock markets (in USD) vs. the 5-year return on the S&P500 (in USD).
2. In USD terms, the U.S. market (13.58% 5-year return) ranks #50 of the international stocks markets available through MSCI.
3. In local currency terms, the U.S. stock market returns rank #45 out of 50 countries, still close to the bottom of the list.
4. Almost 25 countries had 5-year returns in local currency that were double the U.S. return of 13.58%, without any currency appreciation effects.
5. For U.S. investors, only USD returns really matter, so the first chart in the original post with returns in USD is more important than the chart above with returns in local currency.