Following a strong rally during the first half of the year, the past few months have been characterised by global equity markets retreating from their recent highs. In fact, the MSCI World Index ended October 10.4% lower than its July peak, technically placing the index in correction territory.
Yet, despite the recent declines, returns across equity markets since October last year, when the market bottomed, remain impressive. This is perhaps surprising, given all that has transpired over the ensuing period.
The leaders and laggards
From October 12, 2022, to October 31, 2023, the MSCI World Index returned around 20% in US dollars and slightly more in rand. Interestingly, Europe (+27%) and Japan (+20%) were the standout regional performers over the period, while the US marginally underperformed the broader index, despite…