Msci World Backtest -

Yes, but only alongside a Monte Carlo simulation and a rolling-window analysis. A single line from 1987 to 2026 is a trap.

The index launched just before the 1987 Black Monday crash (-23% in one month). This is a critical reminder: even diversified global equity can crash simultaneously. Recovery took 22 months. The early 1990s recession and Gulf War saw flat returns. msci world backtest

7/10 (Deducted points for survivorship bias, dividend tax ambiguity, and currency overhang) Yes, but only alongside a Monte Carlo simulation

Annualized return ~23%. The MSCI World became increasingly tech-heavy (US tech weight grew from ~10% to 28%). Backtest shows this period was driven by multiple expansion, not earnings. Warning: many backtests fail to adjust for the fact that MSCI removed some tech losers post-2000 (survivorship bias). dividend tax ambiguity