by J. William G. ChettleChief Marketing OfficerLoring WardThe United States may be the cradle of liberty and democracy,the well spring of global innovation and economic growth, butwhen it comes to stock market performance, the United States ishardly world class.Asthechartattherightshows,overthelast10years(through2012),America ranked only 39th in terms of annualized performance,returning 7.32%. The top-ranked market over this time, Colom-bia, returned a whopping 36.72%. The U.S. was only six placesaway from perpetually troubled Greece, which returned -5.16%.However, Greece was the only one of these 45 countries to experi-ence a negative average return over this 10- year period. Many of thecountries that outperformed the U.S. experienced war, revolution,civil unrest. Others, such as the Scandinavian countries, featuresubstantial state control and high taxes.Since nobody knows what the future will bring, we believe it isimportant to invest in the U.S. as well as markets around the world.When the U.S. is underperforming, international may outper-form…and vice versa. While we love the great U.S. companies, thescience suggests that investing in thousands of stocks globally canhelp decrease the overall risk of the portfolio and may increase yourreturn. The reason is simple: if you own a lot of companies aroundthe world you will not need to panic if any one company or evenone country experiences losses.Capitalism and creation of wealth is a worldwide phenomenon,and the countries with the highest — and lowest returns — changeyear by year.Ten years ago, almost no one would have predicted that countrieslike Colombia and Peru would do so well. Ten years from now,this list will look very different. Predicting the individual winnersand losers is almost impossible. But chances are that companiesand countries around the world will continue to create wealth andreward investors who take a diversified, global perspective.Ranking of Markets Around the World — Ten-YearPerformance in U.S. Dollars Annualized Returns Year EndingDecember 31,2012 1. Colombia 2. Peru 3. Brazil 4. Indonesia 5. Egypt 6. Thailand 7. Turkey 8. Philippines 9. Chile 10. Czech Republic 11. Mexico 12. China 13. South Africa 14. India 15. Norway 16. Singapore 17. Sweden 18. Denmark 19. Australia 20. Malaysia 21. Korea 22. Russia 23. Hong Kong 24. Canada 25. Poland 26. Morocco 27. Germany 28. New Zealand 29. Switzerland 30. Israel 31. Austria 32. Spain 33. United Kingdom 34. Taiwan 35. Hungary 36. Netherlands 37. France 38. Belgium 39. USA 40. Japan 41. Portugal 42. Finland 43. Italy 44. Ireland 45. Greece_______________________________________________________________________________________Source: Morningstar Direct 2013. Countries represented by their respectiveMSCI IMI(net div.). Indexes are unmanaged baskets of securities in whichinvestors cannot directly invest; they do not reflect the payment of advisoryfees or other expenses associated with specific investments or the man-agement of an actual portfolio. Past performance is not a guarantee offuture results. All investments involve risk, including loss of principal. Foreignsecurities involve additional risks, including foreign currency changes,political risks, foreign taxes, and different methods of accounting andfinancial reporting.International stocks can be riskier than U.S. stocks and are subject to avariety of additional risks, including currency and political risks.Diversification neither assures a profit nor guarantees against loss in adeclining market.LWI Financial Inc. (“Loring Ward”) is an investment adviser registered with the Securities and Exchange Commission. Securities transactions may be offeredthrough Loring Ward Securities Inc., an affiliate, member FINRA/SIPC. R 13-102 (Exp 4/15)assetclassiQWhy InvestInternationally?