Absent from the current portfolio, for instance, are utilities and telecommunications stocks, which make up 13% of the MSCI EAFE
As expected, the return on equity, including US and EAFE
stocks, real estate statistically better in recoveries, with the average monthly returns of 1.
Dollars column in Table 10 revealed that equity markets for five countries, Austria, Denmark, France, Norway, and the United Kingdom and the EAFE
portfolio had returns lower than the United States for the period 1993-1998.
But Dick Vartadanian, chief investment strategist at New York's Republic National Bank, suggests that when comparing the EAFE
and the S&P 500, it's important to recognize that the two are measured differently.
2) Our GARCH specification for the EAFE
returns is shown below.
portfolio better than investing in the large-company EAFE
Presolicitation: Active eafe
investment management services
Summary paragraph: EAFE
markets sometimes disappoint, but there are a few bright spots
Large-cap developed market indices, such as the S&P 500 and the MSCI EAFE
, generated gains of 91.
7% return for the benchmark Morgan Stanley Capital International EAFE
Index of European, Australian, Asian, and Far Eastern companies.
If you were lucky enough to invest in the three best performers in EAFE
last year (and hedged all your currency risk), you would have come away with 57%; if you picked the worst three, you would have lost 30%.
4 percent for the Morgan Stanley/Capital International EAFE
Index, a popular international equity benchmark that comprises developed equity markets in Europe, Australia and the Far East.