The global financial crisis hit the world in a big way in 2008. The first sign of trouble was seen in second half of 2007.
Seven years later, how did some key stock markets perform?
The following table shows the stock indices of 31 December 2007 and 5 March 2015. The percentage change between two dates are provided in the table.
|31 Dec 2007||5 Mar 2015||Change|
|S&P 500 (USA)||1,468.36||2,101.04||43.1%|
|Dow Jones (USA)||13,264.82||18,135.72||36.7%|
|Nikkei 225 (Japan)||15,307.78||18,751.84||22.5%|
|Australia All Ordinaries||6,421.00||5,873.70||-8.5%|
|CAC 40 (France)||5,614.08||4,963.51||-11.6%|
|Hang Seng (HK)||27,812.65||24,193.04||-13.0%|
|Shanghai Composite (China)||5,261.56||3,248.47||-38.3%|
Stock markets of India, USA, Germany, and Japan were firmly higher now than in 2007. Will there be rooms for further upside?
At the other end, we see China, Hong Kong, France, Australia were struggling to catch up with 2007. These countries are still trying to grow their economies for investors to be excited about them.
Singapore and UK were quite close to 2007 stock levels.
From investors’ perspective, questions asked could be:
- Is it too late to get into stock markets that were already significantly higher than 2007?
- Could investors move into stock markets that were so below 2007’s level? Are there potential for upside?
These are difficult questions and to answer them is tantamount to predicting the future and trying to get the timing right for investing or divesting.
Copyright © 2015, limkimtong for Living Investment
The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.