The document analyzes stock market performance and correlations across different world markets from 2003-2012. It shows that returns varied widely between countries, with some like Norway and Austria achieving over 75% returns while others like Greece and Ireland saw declines of over 25%. The US market achieved average annual returns of 28.7% during this period. Charts also show that correlations between different regions were strongest between the US and other developed markets like Canada, the UK, and Europe, while Japan had a lower correlation to other markets.

1. World Stock Market Capitalization
Year-end 2012
Source: Morningstar Direct 2013. Market segments of MSCI All Country World IMI Index. Indexes are unmanaged baskets of securities that are not available for direct
investment by investors. Index performance does not reflect the expenses associated with the management of an actual portfolio. Past performance is not a guarantee of
future results. All investments involve risk, including loss of principal. Foreign securities involve additional risks, including foreign currency changes, political risks, foreign
taxes, and different methods of accounting and financial reporting.

2. World Stock Markets Exhibit Different Performance
High and low returns 2003–2012
100%
Norway
Austria
Greece
75
U.S. Spain Finland
annual Belgium
50
Return:
Sweden
28.7% Canada
26.5%
25 15.8% 15.1% Ireland 16.0%
Finland 10.9%
4.9% 5.5%
2.1%
Finland Japan Japan
0 Ireland
Israel
Ireland Japan
–25
–37.0%
Greece
–50
Greece
Ireland
–75
2003 2004 2005 2006 2007 2008 2009 2010 2011 2002
Source: Morningstar Direct 2013. Index returns are from each developed markets respective MSCI Country NR index. Indexes are unmanaged baskets of securities that
are not available for direct investment by investors. Index performance does not reflect the expenses associated with the management of an actual portfolio. Past
performance is not a guarantee of future results. All investments involve risk, including loss of principal. Foreign securities involve additional risks, including foreign
currency changes, political risks, foreign taxes, and different methods of accounting and financial reporting.

3. Performance of Foreign Stocks and U.S. Stocks
U.S. Market and International Investing
Source: Morningstar Direct 2013. Market segment (Index representation) as follows: U.S. Market (S&P 500); International Market (MSCI EAFE Index (net div.)). 12 Month
rolling returns, quarterly. Indexes are unmanaged baskets of securities that are not available for direct investment by investors. Index performance does not reflect the
expenses associated with the management of an actual portfolio. Past performance is not a guarantee of future results. All investments involve risk, including loss of
principal. Foreign securities involve additional risks, including foreign currency changes, political risks, foreign taxes, and different methods of accounting and financial
reporting.

4. Correlations by Region
1990–2012
U.S. Canada U.K. Europe Japan Pacific
U.S. 1.00
Canada 0.78 1.00
U.K. 0.76 0.68 1.00
Europe 0.79 0.71 0.85 1.00
Japan 0.44 0.47 0.52 0.51 1.00
Pacific 0.70 0.77 0.72 0.73 0.48 1.00
Source: Morningstar Direct 2013. Market segment (Index representation) as follows: U.S. Market (S&P 500); Canada (MSCI Canada NR), UK (MSCI UK NR), Europe
(MSCI Europe Ex UK NR), Japan (MSCI Japan NR), Pacific (MSCI Pacific Ex Japan NR).. Indexes are unmanaged baskets of securities that are not available for direct
investment by investors. Index performance does not reflect the expenses associated with the management of an actual portfolio. Past performance is not a guarantee of
future results. All investments involve risk, including loss of principal. Foreign securities involve additional risks, including foreign currency changes, political risks, foreign
taxes, and different methods of accounting and financial reporting.