MSCI EAFE has been an OK relative performer, mostly staying even with US large cap stocks (i.e., S&P500) this year. The index — developed markets in Europe, Australasia and the Far East — has done ok despite problems Europe and Australia, and is flat for the year.
Japan is 23% of the index, is a big part of the reason why. EAFE ex JAPAN is down almost 6% YTD.
Here is how the Index looks near key inflection points:
Source: JPM Quarterly Chart Book