It seems like only yesterday we had 700 point down moves in the Dow, Lehman going bankrupt, and billions and billions in bailouts being handed out as the stock market made new lows seemingly every week, dragging down most commodity markets with it.
But can you believe it's actually been 5 years, with the low of the crisis happening 5 years ago yesterday - March 9, 2009. The first 3 years sure went by quickly… as we didn't really know we were in the clear, and now the last two have been a blur of new highs in the stock market seemingly every week. My how things change in a hurry.
Now, that was the low in the U.S. stock market - other markets like Crude Oil bottomed before then, and some like Wheat bottom after that - but it's hard to find many losers among the basket of
International markets appear to offer some interesting investment opportunities, particularly relative to domestic stocks. International markets have underperformed U.S. markets for several years, which has opened up the opportunity for some international stocks to play catch up. Valuation metrics also appear to favor international markets. Using the SPDR MSCI ACWI (ex-US) ETF (CWI) as a proxy for international markets and the SPDR S&P 500 ETF (SPY) as a proxy for U.S. markets we find that yield, forward price to earnings, and price to book metrics all favor CWI.
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Source: spdrs.com & Morningstar
Closed end fund investors looking to allocate capital internationally will find few broad international funds. There are many country specific, region specific, and world funds but only a handful of diversified international funds. The BlackRock International Growth & Income Trust (BGY) is one of these funds. BGY offers competitive performance and an 8% distribution,