Hey people a very Blessed & Happy New Year!
Yes... now well into 2010, a look back at the world markets. It has rebounded in 2009. Values of companies around the world have closed (as at the last day of Dec 2009) by a 43.3% - higher than 2008.
Look at the chart below, thanks to Bloomberg.
Year Value % Change (US$trillion)
2003 30.5 -
2004 35.8 +17.5%
2005 40.9 +14.2%
2006 50.0 +22.1%
2007 60.9 +21.8%
2008 32.1 -47.2%
2009 46.0 +43.3%
The recovery since the Great Depression is was the biggest since year 2002/03. As low interest rates regime coupled with government fiscal spending the recovery will be volatile in the short term. As sure as the sun will rise each morning the global market is about 32.4% (US$ 22 trillion) off the 2007 peak. When compared with 2006, the year proceeding to the 2008 global Market peak, it is a mere US$ 4 trillion short.
Your guess is as good as mine, another 10% this year in 2010 will be nothing spectacular.
My views were the same as in 1st. quarter of 2008 - it will be another year of recovery with Asia as the engine of growth. There was a lull in the 1st Quarter of 2008 before the market kept going up, will it be the same for 2010? We will see!
Bye then and have a great year ahead.
Tj
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