Dow Jones Industrial Average Index (Dow) crossed the 14,000 points level for the first time on Friday. When compared with 2 July 2007 before the Global Financial Crisis (GFC) hit, Dow surpassed the index of 13,535 then. This was an increase of 3.5%.
What about other key indices comparing 1 Feb 2013 against 2 July 2007? See table below.
|2 Jul 2007||1 Feb 2013||Change (%)|
|Dow Jones Ind Avg||13,535||14,009||+ 3.5|
|Hang Seng Index||22,151||23,721||+ 7.1|
|Sensex – Mumbai||14,664||19,781||+ 34.9|
|London FTSE||6,590||6,347||– 3.6|
|Aust All Ord||6,298||4,941||– 21.5|
|Shanghai Composite||3,836||2,419||– 36.9|
|Nikkei Index||18,146||11,191||– 38.3|
Hang Seng Index went up 7.1%. Sensex went up 34.9%
Shanghai Composite Index and Nikkei Index have still a long way to catch up. Both indices were still way below 2 July 2007 level by 36.9% and 38.3% respectively.
Australia All Ordinary index was still below 21.5%. London FTSE was 3.6% below.
The Straits Times Index (STI) is now 7.3% below 2 July 2007 level.
In the case of US stock market, Hong Kong market and India market, is exuberance misplaced? Has the world economy returned to pre-GFC level that equities are justified at these levels?
At the other extreme, China market, Japan market and Australia market are still laggards. Are there opportunities for more upside?
London FTSE and STI have some more room for catching up. Or will they?
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