World Stock Markets Gain $5 Trillion in May
As stock markets around the world gained ground last month, the total world stock market capitalization increased by almost $5 trillion in May, according to preliminary data released today by the World Federation of Exchanges. The May gain follows increases of $3.65 trillion in April and $1 trillion in March, and is the first time in almost two years of three consecutive monthly advances in world stock market value. The cumulative three-month gain of $9.625 trillion in world stock market capitalization brings the value of world equities up to $38.39 trillion, the highest level since September 2008, and marks a 33.5% increase from the February bottom (see chart above). All 52 world stock markets reporting to the World Federation of Exchanges registered May increases in their domestic stock market capitalization, led by India with a whopping 44% increase.
6 Comments:
Interesting to note that we're about at 2005 levels. Not bad, considering all the panic and mayhem over the last year.
A trillion here, a trillion there. It ain't so bad.
The good news (I hope) is that we are on the comeback trail.
BTW, huge natural gas finds (Haynesville)
mean energy should be cheap for a long time. Some unalloyed good news there.
FWIW, I've got a different version (using weekly data) of what is essentially the same chart here:
http://scottgrannis.blogspot.com/2009/06/global-equity-markets-up-117-trillion.html
Spelling it out for the uninitiated
If you twice tilt your image on your display by 90 degrees, total 180 degrees you will then see not stock value graph but a rough estimate of the value of the US$ plotted against -time. In light of your new perspective why the pre-emptive strike billion-aire bailout of last September? You can do this if you have Nvidia Display Card or Intel system-board with built in display card.
We did not have melt-down, we had deflation that gave more buying power to the poor man's wallet and the wealthy man's T-Bond. Poor man could buy more gasoline. Wealthy man's December bond could buy more everything. You did not get hit by melt-down. You got hit be a filibuster.
Got it
?
So, they printed more money.
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World GDP as a percentage (2005 to 2100)
==========================================
East Asia 19% (8% to 25%)
Africa 17% (5% to 25%)
Europe 16% (5% to 25%)
South Asia 14% (5% to 20%)
North America 10% (4% to 25%)
South America 10% (3% to 20%)
Southeast Asia 8% (3% to 15%)
West Asia 6% (3% to 15%)
Other -
Other includes Central Asia, Oceania and Antartica, where there are very few people.
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World Population
====================================
East Asia 1500 million people
South Asia 1500 million people
Africa 900 million people
Europe 800 million people
Southeast Asia 600 million people
South America 500 million people
North America 400 million people
West Asia 400 million people
Other 50 million people
------------------------------------
World 6650 million people
See you in two months, when this figure is again cut in half. The Dow was around 8800 when you posted, it lost 300 pts the next week, and now is opening on June 22nd under 8500. When September rolls around, and the Dow is at 6000, all of those investors who bought into your posts on "emerging markets", "market bottoms" and "comebacks" will be looking at more retirement savings pain. Their pensions will be gone, government programs will be bankrupt in a decade, and the sense of entitlement that fueled people's greedy belief that the US always rebounds from setbacks, will be replaced by Phase Five...acceptance. We'll look back at this time period and wonder how we accepted borrowing on our future to float the rich, during the Great Deleveraging.
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