Courtesy of Doug Short.
Note from dshort: At the suggestion of Joerg Willig, a finance professional in Germany, I have replaced the DAX index, which includes dividends, with the price-only DAXK. This change levels the playing field, so to speak, for our international comparisons.
Our eight benchmark world indexes got off to a mixed start for 2012, again on thin volume and variously abbreviated by a mix of market holidays. The DAXK and BSE SENSEX were the stellar performers, a full percent above the S&P 500, which also had strong opening week, as did the FTSE 100. The Shanghai finished last and is now a stunning 37.68% off its interim high. In fact, the adjacent chart shows that six of our eight indexes are more than 20% off their interim highs.
A Closer Look at the Last Four Weeks
The tables below provide a concise overview of performance comparisons over the past four weeks for these eight major indexes. I’ve also included the average for each week so that we can evaluate the performance of a specific index relative to the overall mean and better understand weekly volatility. The colors for each index name help us visualize the comparative performance over time.
The chart below illustrates the comparative performance of World Markets since March 9, 2009. The start date is arbitrary: The S&P 500, CAC 40 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.
Check back next weekend for a new update.
