Saturday, November 13, 2010

World Stock Markets Set Record Three-Month Gain

For the third month in a row, the World Federation of Exchanges reported a significant gain in world stock market capitalization for the month of October, with a $1.6 trillion increase that pushed the total value of world stocks to $51.8 trillion (see chart).  The October increase follows gains of $2.8 trillion in August and $3.8 trillion in September, for a cumulative three-month gain of $8.2 trillion from August-October, one of the largest three-month gains ever.  From the cyclical low of $26.6 trillion in February 2009, the world stock valued has almost doubled to just under $52 trillion last month, and provides further evidence of a worldwide economic recovery and global bull market rally.   


At 11/13/2010 2:06 PM, Blogger PeakTrader said...

US household net wealth rises
But remains below the record level set in Q3 2007.
15 June 2010

At the end of Q1 2010, the value of US household assets amounted to $68.53 trillion.

At the end of Q1 2010, the level of US total household debt was $13.97 trillion.

US net wealth now represents a very respectable 491% of household disposable income. The current ratio is actually exactly in-line with the long-term ratio, which dates back to 1952, although there have been times when the ratio has risen over 600%.

Overall the US consumer remains extremely wealthy by historical and international standards; despite the high level of debt.

At 11/13/2010 2:07 PM, Blogger morganovich said...

amazing what you can do with enough loose money.

i'd love to believe that this is primarily die to great things happening in the world economy, but i fear it is predominantly an asset bubble being driven by unprecedented monetary expansionism.

stocks, commodities, gold, and bonds have all been in massive bull markets (though bonds are faltering of late as the market realizes that QE is not going to work if it upsets the natural buyers of the bonds. amazing how much demand you can disrupt if you act irresponsibly...).

that triple bull can pretty much only occur due to monetary policy.

At 11/13/2010 2:49 PM, Blogger PeakTrader said...

This country needs another asset bubble, not quite like the Information-Age bubble of the 1990s, but more like a Biotech Revolution bubble.

However, we need to scale back on regulations, taxes, and educate and import more biotech workers to get the bubble going.

At 11/14/2010 1:31 PM, Blogger geoih said...

Quote from PeakTrader: "This country needs another asset bubble, ..."

Yeah, that's what we need, more fairy tale solutions.

A persistant recession, unending pumping of money, and a bull market. Can anybody see the reality? Where do you think all that new money is going? Straight into the stock market. There is no where else for the money to go.

The bull market is completely inflation driven. You have your asset bubble. Watchout when this one pops.

At 11/14/2010 1:41 PM, Blogger PeakTrader said...

Geoih, the Nasdaq bubble, from 1995-00, poured vast amounts of capital into high-tech firms, and then we had a quick and massive Creative-Destruction process mostly from 2000-02.

The result: The U.S. leads the rest of the world combined, in both revenues and profits, in the Information Revolution. The U.S. has the strongest and biggest high-tech firms in the world.

At 11/15/2010 6:59 AM, Blogger geoih said...

Quote from PeakTrader: "The result: The U.S. leads the rest of the world combined, in both revenues and profits, in the Information Revolution."

Post hoc ergo proptor hoc.

The information revolution began way before 1995. Perhaps next you will tell us how the 1920's bubble created the auto and aviation industries.


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