From <Financial Times>: &gt; The 16 per cent ascen...
# investing
r
From Financial Times:
The 16 per cent ascent in the benchmark US S&P 500 index this year in dollars is all well and good for domestic investors. The drop in the dollar at the start of 2025, however, means euro-based investors in that same index are up just 2.6 per cent this year. That’s not a typo. They are in negative territory on both the Dow Jones Industrial Average and on the Russell 2000 index of smaller US stocks.
We often talk about investing in the entire market but if you are outside the US investing in the US market, take this into account
m
Very interesting!
r
I personally haven’t checked the numbers (someone prob should even though this is good source)
t
On the flip side, investments in foreign countries did very well.
s
#C04U6PF3X51
All Israelis are feeling this, and yes the numbers are correct. So much so, that many Israelis are considering switching from investing in the S&P 500 to investing in the TA-125 which outperformed the S&P 500 in the last 5 years. Although I think that is wrong as it is chasing performance, if you are invested in the S&P 500, you should be staying there through thick and thin.
S&P themselves have a separate index showing the value of the 500 relative to the shekel and you can see 2.45% for the year
which makes me wonder - since the classic index shows the value of the 500 relative to the USD, lets say the value of all assets in the world stays constant, except for the USD which drops 15%, that would make the S&P 500 rise 15%.
which leads to the conclusion that the 'amazing' performance of the S&P 500 this year, was largely due to the devaluation of the USD rather than inherent appreciation of the underlying assets