SOURCE: Russell Investments

Russell Investments

October 31, 2014 10:34 ET

Raging -- or Aging -- Bull? U.S. Equities Led Global Markets in the Five Years Since Emerging From Recession

SEATTLE, WA--(Marketwired - Oct 31, 2014) -   Since the U.S. emerged from recession five years ago, U.S. equities have led the extended bull run in global equities. October 29, 2014 marked the 5th anniversary of the U.S. emerging from recession, when U.S. Treasury U.S. GDP data showed an annual growth rate of 3.5% for the third quarter of 2009.

In the five years ending October 28, 2014, the Russell 3000® Index returned nearly 150%, while broad global developed markets returned 104.8% (the Russell Developed Markets Index). The U.S. led other global regions during this period, with the Russell Developed Europe Index returning 66.8% and the Russell Asia-Pacific Index returning 63.3%. Although generating positive returns in this same time period, emerging and frontier equity markets also lagged the U.S., with the Russell Frontier® Index and the Russell Emerging Markets Index returning 59.1% and 51%, respectively.

Despite the strong rally in global equity markets over the last five years, Russell's team of global strategists recently reaffirmed its belief that the global equity bull market, while aging, is not over yet.

Wouter Sturkenboom Russell Investments Europe Senior Investment, commented: "The equity bull market is getting long in the tooth. At 66 months, it is the third-oldest bull market in the past 50 years. Our models and process tell us it's not about to end just yet, but we expect volatility to increase as we approach the first Fed tightening."

You can find more insights from Wouter Sturkenboom and the Russell Investments team of global strategists in the most recent quarterly Russell Global Market Outlook - Aging Bull.

Raging - or Aging - Bull?
Russell Index Total Returns Since October 29,2009

Russell Index October 29, 2009 - October 28, 2014
Russell 3000® Index 148.4%
Russell Developed Index 104.8%
Russell Developed Europe Index 66.8%
Russell Asia-Pacific Index 63.3%
Russell Frontier® Index 59.1%
Russell Emerging Markets Index 51.0%

Source: Russell Investments. Returns are total returns (reflect reinvestment of dividends and distributions) and are denominated in euros.

The Russell Global Index measures the performance of the global equity market based on all investable equity securities, and is constructed to provide a comprehensive and unbiased barometer for the global segment. The Index includes more than 10,000 securities in 47 countries, and covers 98% of the investable global market. All securities in the Russell Global Index are classified according to size, region, country and sector; as a result the index can be segmented into more than 300 distinct benchmarks.

Please note: Indexes are unmanaged and cannot be invested in directly. Returns represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment. Russell's publication of the Indexes or Index constituents in no way suggests or implies a representation or opinion by Russell as to the attractiveness of investing in a particular security. Inclusion of a security in an Index is not a promotion, sponsorship or endorsement of a security by Russell and Russell makes no representation, warranty or guarantee with respect to the performance of any security included in a Russell Index. 

Global equity involves risk associated with investments primarily in equity securities of companies located around the world, including the United States. International securities can involve risks relating to political and economic instability or regulatory conditions. Investments in emerging or developing markets involve exposure to economic structures that are generally less diverse and mature, and to political systems which can be expected to have less stability than those of more developed countries.

Opinions expressed by Mr. Sturkenboom reflect market performance as of October 28, 2014 and are subject to change at any time based on market or other conditions without notice. Past performance does not guarantee future performance. 

Nothing contained in this material is intended to constitute legal, tax, securities or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax and investment advice from a licensed professional. The information, analysis and opinions expressed herein are for general information only and are not intended to provide specific advice or recommendations for any individual entity.

Russell Developed Europe Index country constituents Belgium and Denmark have one constituent with more than a 30% weighting, so did not meet public reporting requirements.

Russell Investment Group is a Washington, USA corporation, which operates through subsidiaries worldwide, including Russell Investments, and is a subsidiary of The Northwestern Mutual Life Insurance Company.

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