All eight indexes on our world watch list posted Gaines By May 1, 2023. France’s CAC 40 topped the list with a YTD gain of 15.72%. Germany’s DAXK ranked second with a YTD gain of 13.34%, and Tokyo’s Nikkei 225 ranked third with a YTD gain of 11.61%. India’s BSE Sensex came out of the red mark last week for the first time since mid-February.
World Indices and the Recent Recession
Let’s start with a recent chart with the latest bearish momentum. We used February 3, 2020 for our start date (this is the official NBER recession start).
The chart below shows the comparative performance of world markets since March 9, 2009. The start date is arbitrary: the S&P 500, CAC 40, and BSE Sensex hit their bottoms on March 9, the Nikkei 225 on March 10, the DAX on March 6, the FTSE on March 3, the Shanghai Composite on November 4, 2008, and so on. Hang Seng on October 27, 2008. However, by aligning to the same day and using a log-scale vertical axis, we get an excellent visualization. of relative performance. I have indexed each of the eight 800’s on the March 9th start date. The callout in the upper left corner shows the percentage change from the start date to the latest weekly close.
Here’s the same visualization, this time starting with the October 9, 2007, previous closing high for the S&P 500. The date is also roughly the mid-point of a range of market peaks, which began on June 1 for the CAC 40 and ended on January 8, 2008 for the Sensex.
For a longer look at relative performance, our final chart begins at the turn of the century, again indexing each at 800 for the start date.
Check back next week for new updates.
Examples of Single Country ETFs:
Comment: i track germany DAXK price index rather than the more familiar dex Index (which includes dividends), for consistency with other indexes that do not include dividends.
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Originally published On Advisory Perspectives on May 1, 2023.
The views and opinions expressed here are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.