MSCI Country Performance in 2020

Here’s a chart of how some foreign equity markets around the world have performed relative to each other throughout 2020. Its based on iShares MSCI ETF performance.

This year’s correction and recovery have been unique from prior corrections in that the catalyst was a pandemic that impacted every country in the world, but at different times. Observing the chart, you can find where some countries underperform or outperform others as they go into and out of lockdowns and other measures that impacted the local markets.

There was an upturn in markets around October 28 (a bottom for US markets on 10/30). Around the same time several regions went back into lock downs early, with the United States refraining from further lock downs until some states pivoted heading into late November and asked for business to shut doors. It’s clear that the countries that locked down early have markets that are accelerating as investors see those economies likely to emerge from slowdowns faster.

Similarly, you can look at a comparison of currencies and see similar trends. Below is a currency comparison since the beginning of 2020.

Finally, below is world currencies since October 28.

It’s a curiosity, if not a pointer to what foreign countries to build some portfolio exposure. Most likely, the US market will emerge in relative strength once we clear the current pandemic wave and have a vaccine in place.