Summary

Over the past 5 years, the performance of major global stock indices has shown significant divergence, with the Nasdaq 100 and S&P 500 overall leading the way. The core driving forces behind this are AI, semiconductors, cloud computing, and the sustained growth of global tech giants.

However, the different indices actually represent completely different economic narratives: the U.S. market leans more towards technology and globalized companies, the Chinese market focuses on the internet, manufacturing, and hard technology, Japan is oriented towards automobiles, electronics, and high-end manufacturing, while India is more about population, consumption, and digitalization.

Therefore, the differences between indices are not just about returns; essentially, they also reflect different countries, different industry cycles, and different economic models.

KTX Crypto Portfolio Insights

For the KTX Crypto portfolio, what is more noteworthy in this community perspective is the "structural divergence of global assets". The focus is not simply on judging which market is best, but on understanding what kind of growth logic capital is chasing:

• Technology growth remains the core theme: The strong performance of the Nasdaq 100 and S&P 500 in recent years is closely related to high-growth industries such as AI, semiconductors, and cloud computing.
• Different indices represent different economic narratives: Buying an index essentially means allocating according to the underlying industry structure, corporate profitability, and economic growth model.
• There is no permanently strongest market: U.S. tech stocks currently hold an advantage, but different markets’ performance will still shift with economic cycles, valuations, and policy environments.
• Global allocation can reduce reliance on a single market: Markets such as A-shares, Hong Kong stocks, Japan, Europe, India, and Brazil have different industry structures and cycle characteristics, offering varied asset exposures.
• Portfolio execution: The relative strength of major global indices can be used as an observation indicator for macro asset allocation, combined with valuation, liquidity, earnings growth, and industry cycles for judgment, rather than simply chasing recent gains.

Original Article Included

At a glance! The returns of mainstream indices in various countries over the past 5 years, with the Nasdaq and S&P far ahead

The gap in global stock markets over the past few years may be larger than imagined.

The Nasdaq and S&P 500 lead major global indices, driven by AI, semiconductors, cloud computing, and the sustained growth of global tech giants.

But if you take a longer view, you will find that different indices actually represent different economic narratives.

United States:

S&P 500 and Nasdaq 100, centered on tech leaders and globalized companies.

China:

CSI 300, CSI 500, and STAR 50 correspond respectively to large-cap, mid-cap, and hard technology industries.

Hong Kong:

Hang Seng Index and Hang Seng Tech focus more on Chinese internet, finance, and consumption sectors.

Japan:

Nikkei 225 mainly exposes to automobiles, electronics, and high-end manufacturing industries.

Europe:

Germany’s DAX, France’s CAC, and the UK’s FTSE 100 lean more towards industrials, luxury goods, energy, and high-dividend assets.

India:

Nifty 50 is more about population, consumption, and digital growth.

Brazil:

Ibovespa is more influenced by mining, oil, and commodity cycles.

So, my personal view is:

There is no permanently “best” market, only assets that are more advantageous at different stages.

The strong performance of Nasdaq and S&P 500 in recent years is indeed noteworthy.

The AI wave, semiconductor cycle, cloud computing, and the profitability of U.S. tech giants have jointly driven sustained investor interest in U.S. tech assets.

But the significance of global allocation lies here:

Don’t put all your opportunities in one market.

When industry cycles, interest rate environments, policies, and capital flows change, the performance of assets in different countries and regions may be reordered.

Therefore, a question more important than simply comparing “which index has risen the most” is:

What economic narrative is the current market trading? Whose narrative might dominate in the next phase?

This may be a more important perspective for understanding global asset allocation.

Original Author: Dr. Moyu｜Director Moyu

X Account: @Jason23818126

Original Link: https://x.com/Jason23818126/status/2086802755289780524 

Risk Warning: This article is a community opinion collection and does not constitute any investment advice. DYOR (Do Your Own Research).