The US #equitymarket is down almost 20% YTD and could go down another 15-20% before bottoming. Other major markets, namely EU, UK and Japan are not faring better in L/C terms and even worse once their performance is adjusted in USD. There are however two stock markets that have outperformed the S&P both in L/C and USD terms; #Indonesia and #Singapore (see chart).

Indonesia is up 9% in L/C and 4.4% in USD terms. That is a stunning 25% YTD outperformance vs the S&P 500. With a 16 P/E, the Indonesian story is predicated on a young population approaching middle class and a wealth of natural resources. On the political side, the Jokowi government has delivered growth, stability and a reasonably pro-business environment. Indonesia may be the more attractive emerging market, especially if compared to similarly large and resource-driven Brazil, down approximately 3% YTD in USD terms.

Singapore is up 4.6% in L/C YTD, 0.5% in USD terms. At 12 P/E is also far cheaper than the S&P at 16. Singapore’s fundamental story is brighter on a relative basis than the US, EU/UK and JAP. A variety of issues in HKG and China have been net positive for the island state and a steady influx of talent and capital has buoyed the economy. Political stability, rule of law and strong fundamentals are the hallmarks of what may well be the best of breed for advanced economies.

While US equities have consistently delivered top returns over the last two decades, the world is changing and cognizant investors may want to start exploring diversification. Within Asia, Singapore and Indonesia, while completely different investment cases, may be the most interesting. The distinct possibility of a weaker greenback ahead, would also further juice returns in USD terms.

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Disclosure: Hold all assets mentioned. Not investment advice. Do your own research.