Mutual Fund Rankings, 2019
Volatility wreaked havoc on nearly all of the world's stock markets in 2018, posing a challenge for mutual funds. Most major markets posted double-digit declines. A few fell by more than 20%--officially a bear market. Standard & Poor's 500-stock index, a relative bright spot, sank just 4.4% for the calendar year. But overseas, things got ugly. Two major foreign-stock benchmarks registered hair-raising declines midyear. In both cases, a late 2018 rebound partially revived returns. The MSCI EAFE, an index of foreign stocks in developed markets, finished the year with a 14% decline. And the MSCI Emerging Markets index dropped 15%. (Returns are through December 31, 2018.)
A stronger dollar, rising U.S. interest rates and escalating trade tariffs were a drag on foreign stocks. China lost 19% in 2018. In Europe, economic growth flatlined, and a debt crisis in Italy spooked investors. Some bourses turned bearish, including Germany's, down 22%, and Ireland's, down 25%. Japan's stock market fell 13%.
In the U.S., after an early rough patch, the S&P 500 hit record highs in August and September. Weeks later, the index
