Sunday, September 13, 2009

6th Consecutive Monthly Gain in World Stock Value

As stock markets around the world gained ground last month, the total world stock market capitalization increased by $2.26 trillion in August, according to preliminary data from the World Federation of Exchanges. The August gain follows increases of $1 trillion in March, $3.59 trillion in April, $3.82 trillion in May, $600 billion in June, and $2.84 billion in July and is the first time in two years of six consecutive monthly advances in world stock market value.

The cumulative six-month gain of $14.145 trillion in world stock market capitalization brings the value of world equities up to $42.815 trillion in August, the highest level since September 2008, and marks a 49% increase from the February bottom (see chart above).


At 9/14/2009 10:15 AM, Anonymous Anonymous said...

If you don't recognize, even with complete hindsight, that the last such boom was induced by artifically low interest rates then you're not likely to recognize the even faster incline is due to more of the same.

Have you never heard of Search for Yield?

Gird your loins for a 1000 point correction in the DJIA in the coming six months.

At 9/15/2009 7:22 PM, Blogger BxCapricorn said...

This rally has gone so far beyond any value investor's sense of value, that to attempt to validate with a two dimension chart, is hilarious. We could have blown the trumpets when housing prices were ludicrously high and World Market capitalization was $64B in January 2007...oh wait a second, you did....

I love reruns! Make some popcorn....


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