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Nicholas Aninos

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Investors were able to see past a number of headlines, including inflated energy prices, hurricanes, terrorist bombings, and social unrest, to help equity markets turn in a year of strong performance. In local currency terms, all developed world countries landed in positive territory for 2005.

World economic data released in March was positive across the board. In the U.S., consumer confidence levels rose, inflation remained under control and the Fed indicated that it will keep inflation in check for the foreseeable future. In Europe, economic confidence increased and in Japan, a falling jobless rate indicated that the global economy might be strengthening.

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