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July 21, 2008
Stock Market Performance Round-up: Dancing to the Same Tune
This post is a guest contribution by Prieur du Plessis, writer of the Investment Postcards from Cape Town blog.
Factoring in last week's stock market rebound, I have put together a table of global stock markets' performances - over various measurement periods and in both local currency and US dollar terms. The numbers speak for themselves and can best be summarized in a single sentence: Despite the variation in the economic impact of the credit crunch, stock markets have by and large been dancing to the same tune.
The Wall Street "leash effect" remained paramount, and stock market (as opposed to economic) decoupling nothing more than a myth.
As a result of the slide of the US dollar over the different measurement periods, the performance of those stock markets where the local currency strengthened against the greenback (pretty much all markets) obviously look better once expressed in US dollar terms (see bottom table).
We are possibly in the midst of a tradeable rally, but I do not know (and neither does anyone else) whether last week marked a major bear market low. In the words of David Fuller (Fullermoney): "The markets will provide the answers in their own good time."
Click here for a larger table.
Click here for a larger table.
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