Here’s our latest weekend snapshot of seven major world indexes. Last weekend the Bombay SENSEX had been the biggest loser, but this week it was the only one of the seven to finish with a gain.
At the other extreme, the Shanghai Composite (NYSE:FXI) finished in last place and is now down nearly 22% since its interim high in 2009. The Hang Seng, Nikkei (NYSE:EWJ) and FTSE also suffered substantial losses. The FTSE 100 was particularly erratic, setting an interim high on Tuesday before declining 2.64% by the week’s close. The DAX also set in interim high last Tuesday and also retreated, but not so dramatically.
The chart below illustrates the comparative performance of World Markets since March 9, 2009. The start date is arbitrary: The S&P 500 (NYSE:SPY) and Bombay SENSEX hit their lows on March 9th, the Nikkei 225 on March 10th, the DAX on March 6th, the FTSE on March 3rd, the Shanghai Composite on November 4, 2008, and the Hang Seng even earlier on October 27, 2008. However, by aligning on the same day and measuring the percent change, we get a better sense of the relative performance than if we align the lows.
Here is the same chart starting from the turn of 21st century. The relative over performance of the emerging markets is readily apparent.
Doug Short Ph.d is the author of dshort.com.
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