Around the world, global stock markets have taken a beating in 2016. Many are already down 10% or more in this fledgling year. Despite its declines, the U.S. stock market has been a relative outperformer this year, down just 6.7% in 2016, and down about 10% from its highs in 2015. (At lower levels earlier this week, the U.S. market was down about 9% year-to-date and nearly 13% from its peak.) According to Bloomberg, as of earlier this week, at least 40 of the largest stock markets in the world were already in Bear Market territory, down at least 20%. Vanguard’s Total World Stock Market index, measuring markets in 47 major economies, is currently down about 18% from its 2015 peak. All told, according to Bloomberg, since peaking in early 2015, roughly $17 trillion in global market value has been marked down by worldwide investors and speculators.
David A. Pace, CFA
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