RouteMaster: Yes. You could analyse the performance of an investment style in any particular region compared the same style on a global basis.

In this example we compare the performance of SmallCaps in Demoland to that of SmallCaps globally. Here you can see that they have only performedf relatively badly since 1998. In other words most of the underperformance of SmallCaps in Demoland, that was seen in the previous chart, has been due to the underperformance of SmallCaps generally, and only of SmallCaps within Demoland only in the last couple of years.

I can imagine this is getting a bit complicated, so let me put it in terms of an analogy. Think of yourself sailing across the English Channel. There is one tide going in and out from either shore and another one going up and down the Channel. To maximise your speed from a point on one shore to a different point on the other shore, you would do best to pick the right tidal combination. If you could also predict when the tides might change direction you would do even better. In other words the Regional and Global perspectives help you sail with the tides by providing our Best Guesses about the timing and directions of those changes in tide.

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