Global Markets: Some Closest to All-Time Peaks, Others Farthest Away

From the March 2009 lows, many stock markets worldwide have rebounded nicely and are now in the positive column for the year. However what about the performance of these markets from their all-time highs?

Most global stock markets made their all-time highs in 2007 or 2008. From that peak many of them fell hard to reach their troughs early this year. The fall was brutal especially for emerging and frontier markets. But after the recent run, some of them are very close to the peaks they established earlier. Others are still a long way from reaching their peaks.

Global Equity Market Performance Relative to Their Peaks

click to enlarge

The Best Performing Equity Markets:

The best performing equity market that has already surpassed the previous peak is Colombia, which is considered a frontier market. The Colombian market is already up 11% over the last peak made in June 6, 2008.

Some of the other markets that are closer to reaching their all-time highs include Israel, Chile and Indonesia who are all way under 20% from their peaks. Peru is exactly 20% away and Thailand is 24% away. Closely following are Switzerland and Malaysia at 25% and 26%. The frontier markets of Peru, Colombia and Indonesia are performing very well despite the global recession. Interesting to note that Israel with many of its hi-tech companies is the second best performer on this list.

The Worst Performing Equity Markets:

The top 5 worst performing markets are still far away from their peaks. Ireland is still 78% away. Austria, Belgium and Finland are all close to 60% away. The emerging market of Russia is still down 57% from its peak reached in May of last year. The economies of these countries are still in worse shape despite many stimulus and bailout efforts.

Related ETFs:

1. GlobalX/InterBolsa FTSE Colombia ETF (GXG)

2. iShares MSCI Israel Capped Investable Market Index Fund (EIS)

3. iShares Chile Index Fund (ECH)

4. iShares MSCI All Peru Capped Index Fund (EPU)

5. iShares Malaysia Index Fund (EWM)

Comments

[Mike Kane:]

many of these frontier markets that are doing well are exporters of materials, commodities, so they should continue to do well as dollar weakens

Oct 19 01:16 PM