World Stock Markets: Best Performing Markets of 2009
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Lima, Peru. 25 May 2009. Most people know a lot more than they probably would like to about the massive destruction of wealth that occurred on a global scale in 2008. Understanding how much wealth is currently being created – or recovered – is an altogether more enjoyable learning experience. [br]
Lima, Peru. 25 May 2009. Most people know a lot more than they probably would like to about the massive destruction of wealth that occurred on a global scale in 2008. Understanding how much wealth is currently being created – or recovered – is an altogether more enjoyable learning experience. [br]
Bloomberg’s World Equity Market Cap diagram tells the story in a thousand words – or more accurately, in 37 trillion + 9.5 trillion world. At its peak in October 2007, global equity, or the market capitalization of all companies in world stock markets, stood at $62.5 trillion, close to that years World GDP figure of $65 trillion.
Blood-curdling screams were heard as household names – and confidence – crumbled. A jaw-dropping $37 trillion of wealth in the form of market cap was wiped out in 18 months up to the multi-year lows that were reached on 9 March 2009. That was 59 per cent of public company values, or $25.5 trillion. Since then, however, there has been a more auspicious 37 formed – equity values have risen 37 per cent – a wealth-growth of $9.5 trillion – to just over $37 trillion.
A couple of key questions now arise for investors. Is it time to get back in to the markets? And if so, which markets?
With hindsight, we can say that the answer to the first question, in March, would have most definitely been ‘yes’. EconomyWatch.com is not a stock picker or market caller, but we suspect that the question today is more about how much of your portfolio should be in equities, rather than whether you should be in at all.
As for the question of which markets, some excellent research from Bespoke Investments sheds some light on year to date performance in 2009. [br]
A couple of key questions now arise for investors. Is it time to get back in to the markets? And if so, which markets?
With hindsight, we can say that the answer to the first question, in March, would have most definitely been ‘yes’. EconomyWatch.com is not a stock picker or market caller, but we suspect that the question today is more about how much of your portfolio should be in equities, rather than whether you should be in at all.
As for the question of which markets, some excellent research from Bespoke Investments sheds some light on year to date performance in 2009.
Almost all markets fell in 2008, but now 62 out of the 83 studied are now up on the year. Peru has performed the best so far, at 72.92 per cent, down 31.94 per cent from its 52-week high. Three of the four BRICs come next, with Russia up 53.33 per cent, India up 48.25 per cent, and China up 47.01 per cent.
In all, the top 10 stock markets of are as follows:
- Peru 72.92% -31.94%
- Russia 53.33% -61.22%
- India 48.25% -18.26%
- China 47.01% -26.30%
- Taiwan 44.96% -28.51%
- Ukraine 44.30% -55.38%
- Argentina 43.24% -31.47%
- Indonesia 39.15% -25.05%
- Brazil 37.32% -30.18%
No market has set a new high, but Venezuela is close, down only 1.10 per cent having gained 26.16 per cent, while Tunisia is down 1.98 per cent, gaining 16.81 this year.
How have the developed countries done? Not so well. Although US markets have had a nice run up since the March lows, they are less than 1 per cent up on the year and still 36.67 per cent off the highs. UK (1.08 per cent), France (1.77 per cent) and Germany (3.11 per cent) have done a bit better. No surprise that Canada is the best performing of the G7 with 12.62 per cent growth, although Japan probably doesn’t warrant its 4.86 growth.
And who has done the worst? Cost Rica is down 39.94 per cent on the year, and Puerto Rica is down 36.12 per cent. Iceland has dropped the most since the highs – it is barely 5 per cent of its pre-cash value, having dropped 94.86 per cent. Dubai is in the green – just – for the year but down 71.56 per cent from the 52-week high, while Bulgaria is down 70.61 per cent, but has gained 6.25 per cent on the year. Here is the full chart, hope it helps you to pick the best performing stock markets for the whole of 2009 – let us know how you get along.
World Stock Market Performance 2009 Bespoke Investment Group
Juan Abdel Nasser, EconomyWatch.com
