Monday, October 12, 2009

7th Consecutive Monthly Gain in World Stock Value

As stock markets around the world gained ground in September (MSCI World Index increased by 3.8% for the month), the total world stock market capitalization increased by $1.94 trillion in September, according to preliminary data from the World Federation of Exchanges. The September gain follows increases of $1 trillion in March, $3.69 trillion in April, $4.12 trillion in May, $575 billion in June, $2.92 billion in July, and $1.12 trillion in August, and is the first time in more than two years of seven consecutive monthly advances in world stock market value.

The cumulative seven-month gain of $14.375 trillion in world stock market capitalization brings the value of world equities up to $44.77 trillion in September, the highest level since August 2008, and marks a 52.7% increase from the February bottom (see chart above).

4 Comments:

At 10/12/2009 11:59 PM, Blogger John Thacker said...

Now, that number does look work in most other currencies, considering the decline in the USD. Thankfully, I've had good exposure to foreign index funds as well.

 
At 10/13/2009 1:29 PM, Blogger bobble said...

all that central bank supplied liquidity has to go somewhere. its causing bubbles in equities and commodities. it is not necessarily an indication of economic recovery.

S&P 500 P/E vs Monetary Base

 
At 10/13/2009 1:54 PM, Anonymous GregL said...

Since the banks are not lending their reserves, the only way for the liquidity on offer from central banks to increase the stock market is if the banks are speculating with the central bank funds.

Thus, as soon as liquidity is withdrawn, or the banks start lending, the stock market will go down.

 
At 10/13/2009 3:12 PM, Anonymous Benny The Man said...

Dudes, this is a recovery. No recession lasts forever--this one lasted a long time, historically speaking. And the US is no longer the world--the world is moving ahead without us.
China growing again, pulling up Asia with it.

 

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