The long weekend affords one the opportunity to take a break from the markets’ frenzied trading and try and see 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 US!
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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