Venezuela best performing market

This interesting table supplied courtesy of the Financial Portal points out some of the folly of trend following and the merits of contrary investing.   When I was a broker at PaineWebber I used to train other stockbrokers. Every week we would have mutual fund wholesalers come in to the office, buy us lunch and show us their funds. One day while we were finishing up lunch and the wholesaler was just getting into his dog and pony show, I interrupted him. I said today we want to hear something different. You come here month after month and tell us all about the best performing funds your company has to offer. I want to hear about the worst performing funds. We’ve been selling the best performing funds to our clients, and they seem to turn into the worst performing funds.  So let’s just start with the worst performing funds. Now I said this with more than a touch of sarcasm, but there is a certain amount of truth to my statement. There is a reversion to the mean in both life and the markets. Just look at last year’s biggest winners in stock market and see how they are doing this year.

For starters, Venezuela is the best performing stock market in the world up year to date an astounding 104.5%.  Egypt of all places is #2 up 35%.  Contrast that with the US Market, 23rd in the list, up 6.67%.  The worst performing market Cyprus down 43% followed by none else than Spain -23.34%.  If I had to place a bet on the best performing market next year, it would be Spain but I wouldn’t buy until the Fall before the U.S. election.