Developed World Index Approaches its All Time High

Index of Developed Countries Climbs to With 1% of Prior All Time High

The MSCI Developed World Index is on the verge of surpassing its all-time high from early January 2022, thanks to the increasing number of global equity markets that have recently achieved, or are about to reach, new record levels. This trend is providing strong support for the ongoing rally in the index.

Historically, when the MSCI Developed World Index comes within just 1% of its previous all-time high, it tends to exhibit significant momentum. This momentum often leads to particularly robust returns over the next year, with an impressive track record of 9 positive outcomes compared to 0 negative ones, resulting in an average return of +11.74%.

One remarkable historical pattern can be observed in Emerging Markets. Analyzing data going back to 1988, we find a striking pattern of 6 positive outcomes and 0 negative ones [avg. + 32.20%] when the Developed index is back to within 1% of its prior all-time high. Please refer to the table below for a more detailed breakdown.