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July 30, 2011

ChartMatters: Week in Review - The U.S. Leads In Red (Guest Post)

By Doug Short

What a difference from last week, when my update title was Major Rally. The seven major world markets I track all finished in the red with six of the seven down anywhere from two to nearly four percent. The S&P 500 finished dead last, down 3.92%, and doubtless contributed to the broader international retreat, thanks to our political incompetence in dealing government financial policy.


The tables above provide a concise overview of performance comparisons over the past four weeks for these seven major indexes. I've also included the average for each week so that we can evaluate the performance of a specific index relative to the overall mean and better understand weekly volatility. The colors for each index name help us visualize the comparative performance over time.


The chart above illustrates the comparative performance of World Markets since March 9, 2009. The start date is arbitrary: The S&P 500 and BSE SENSEX hit their lows on March 9th, the Nikkei 225 on March 10th, the DAX on March 6th, the FTSE on March 3rd, the Shanghai Composite on November 4, 2008, and the Hang Seng even earlier on October 27, 2008. However, by aligning on the same day and measuring the percent change, we get a better sense of the relative performance than if we align the lows.

A Longer Look Back


Here is the same chart (Above) starting from the turn of 21st century. The relative over-performance of the emerging markets (Shanghai, Mumbai, Hang Seng) is readily apparent.

Check back next weekend for a new update.

About The Author - Doug Short is the Vice President of Research for Advisor Perspectives.  He holds a Ph.D. in English from Duke, and maintains a blog at dshort.com.  Doug's last name is not representative of his investment style.  (EconMatters author archive here)

The views and opinions expressed herein are the author's own, and do not necessarily reflect those of EconMatters.

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Item Reviewed: ChartMatters: Week in Review - The U.S. Leads In Red (Guest Post) Rating: 5 Reviewed By: EconMatters