TY - JOUR T1 - Major Stock Market Linkages in the 2000–2001 Bear Market JF - The Journal of Investing SP - 55 LP - 62 DO - 10.3905/joi.2002.319525 VL - 11 IS - 4 AU - Ilhan Meric AU - Lewis W. Coopersmith AU - Donald Wise AU - Gulser Meric Y1 - 2002/11/30 UR - https://pm-research.com/content/11/4/55.abstract N2 - This study of the co-movements of the U.S., Japanese, U.K., German, and French stock markets during the March 27, 2000-April 4, 2001, bear market indicates that the five stock markets were highly correlated, and diversification benefits to U.S. investors with these markets were quite limited during the bear market period. Low correlations among the world's equity markets are often presented as evidence in support of portfolio gains to investors from international diversification. These findings indicate that investments in other major stock markets provide little or no diversification benefit to U.S. investors in a severe bear market, when diversification protection is needed the most. Comparisons of the March 2, 1999-March 26, 2000, bull market period and temporary up- and downswings in bull or bear markets confirm the point. ER -