Global Stock Markets Erase $4 Trillion in Two Weeks
In the last two weeks, with the S&P downgrade to U.S. government debt and continuing sovereign debt crises abroad, global stock markets have lost over $4 trillion, about one seventh of the value of the MSCI All-Country World Index — that’s the equivalent of the combined economies of Italy (NYSE:EWI), Spain (NYSE:EWP), Portugal, Ireland, and Greece.
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Global markets sold off nearly $1.6 trillion this week, after only three full days of trading, to follow up last week’s $2.5 trillion loss. The current valuation of the benchmark is $24.84 trillion.
Just the S&P 500 (NYSE:SPY) has lost over $710 billion this week, accounting for nearly half of this week’s losses, while it fell $850 billion last week, accounting for roughly 34% of losses. The MSCI Europe has lost almost $500 billion this week.