an tSionna {06.12.14}

From Chart of the Day {Subscription Required to access their work product.  The chart above is available to the public}.  Their commentary below.

"For some perspective on the post-financial crisis rally, today's chart illustrates how much of the downturn that occurred as a result of the financial crisis has been retraced by several major international stock market indices. For example, the S&P 500 peaked at 1,565.15 back in October 9, 2007 and troughed at 676.53 back on March 9, 2009. The most recent close for the S&P 500 is 1,950.79 -- it has retraced 143.4% of its financial crisis bear market decline. As today's chart illustrates, China (Shanghai Composite), Japan (Nikkei 225), India (S&P BSE Sensex), Germany (DAX), France (CAC 40) and the UK (FTSE 100) are all above their financial crisis lows (i.e. above 0% on today's chart) and three of the aforementioned countries (Germany, India and the UK) are currently trading above their respective pre-financial crisis peak (i.e. are above 100% on today's chart). It is interesting to note that the US (epicenter of the financial crisis) has outperformed the other major stock market indices (* keep in mind that the German DAX is unique in that it includes for the reinvestment of dividends) while China has lagged to the point where it only trades 7.9% above its financial crisis lows -- not that impressive of a performance considering that the financial crisis occurred well over five years ago."

My comment.  Can't help but wonder if that discrepancy between Asia and the US is at some point going to either mean revert or even out.  See our post Tuesday on Valuation via the Telegraph.  

Link:  Chart of the Day:  Current Post-Financial Crisis Retracement Level.

**Long ETFs related to most of these countries either individually or regionally in both client and personal accounts.  Please note that our positions can change at any time without notice.