Courtesy of Doug Short
All of the major world markets in this series lost ground over the past week. The DAX has been a consistently poor performer in the three-week comps shown below. But the worst performance by far was the Shanghai Composite’s 5.20% plunge. That index is now 21.94% below its interim high on August 4, 2009, which puts it back in bear market territory under the conventional 20% decline benchmark.
The chart below illustrates the comparative performance of World Markets since March 9, 2009. The start date is arbitrary: The S&P 500 and BSE 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.
A Longer Look Back
Here is the same chart starting from the turn of 21st century. The relative over-performance of the emerging markets (Shanghai, Mumbai, Hang Seng) is readily apparent.
