World Won't Sniffle If U.S. Sneezes

S&P says growing domestic consumer demand in other nations will allow their economies to better weather a U.S. slowdown

International equities have outpaced U.S. stocks over the past four years. And barring some year-end meltdown, the trend looks set to continue in 2006. This year through November 10, the S&P 500 was up 10.6% -- a respectable, even praiseworthy number -- but quite short of the 17.8% advance (in U.S. dollars) over the same period that was posted by the MSCI EAFE index, the leading benchmark for international developed equities. Moreover, the MSCI Emerging Markets index was up 19.3%.

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