Prieur du Plessis
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The long weekend affords one the opportunity to take a break from the markets’ frenzied trading, and try and put things in perspective. More precisely, to reflect upon how much damage has been done since the stock market highs of a few months ago.
The table below shows the scorecard for a number of global stock markets, indicating the index movements since each of the respective market’s highs. The numbers (all in local currency terms) speak for themselves; suffice to say most are in bear-market territory based upon the traditional definition of a decline of more than 20%.
Source: Plexus Asset Management (based on data from I-Net Bridge)
Interestingly, the MSCI World Index (-16.8%) is still shy of the -20% level, whereas this level has already been breached by the MSCI Emerging Markets Index (-20.4%). Also, European markets have mostly been underperforming the S&P 500 Index (-15.1%) and the Dow Jones Industrial Index (-12.7%). So much for global economies decoupling from the U.S.!
I do not have access to my normal research resources over the long weekend, but will publish a table next week with all the returns expressed in a common currency such as the euro. That should make for interesting reading.
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This article has 2 comments:
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p2pvoice
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11 Comments
Mar 23 10:19 AMThanks.
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mallarde
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165 Comments
Mar 23 08:28 PMOuch. I really thought that the South African market would move independently of the U.S. market. When I charted my ETFs against the Dow last week, they were in lock step the whole way. What is up with that???
Only DEM, which focuses on income-producing stocks, has held its value.
I have no plans to get out of the ETFs at this point, but I really have no sense of where these indeces are heading, in particular EEM. I think emerging markets have the most downside potential. Any thoughts?