The strong run in emerging market equities and the relative outperformance of non-US developed market stocks appears to have ended as a weak US housing market weighs down on consumers and credit markets and high commodity prices stoke inflation worldwide.
In fact, the S&P 500 index has actually outperformed both the MSCI EAFE and main emerging market indices since year to date.
European and Japanese stocks, which have done relatively better that US stocks for some time, are suffering both from weaknesses in US consumer demand and the depreciating dollar and from tighter...
