International Markets go from Bad to Worse

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We know international and emerging markets are risky, but just when you thought it was time to get in these markets get slammed. As of January 29, 2020, the U.S. market, as measured by the S&P 500 index, was still up around 1.42% YTD. But the emerging markets (MSCI Emerging Markets index) were down 1.51% and the international developed markets (MSCI EAFE index) were down 1.03%. That is a spread to the S&P 500 of 293 and 245 basis points, respectively, in one month. Multiply that magnitude by 12 months and you get a sense of how tough going it has been. Meanwhile, the United States just reported an above consensus 4Q19 GDP growth rate of 2.1% as the global supply chains are being severely disrupted, which makes international investing go from bad to worse.

Please read our Voya Global Perspectives 2020 forecast: “Our 2020 forecast is to batten down the hatches for the impending storm.”

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