Global Market Returns to Date
The global equity return for 2008 so far is quite bleak. Let’s look at this chart to see some of the major financial markets’ rate of return since January:
Global markets are correlated, and global equities are enduring a correction that is taking them near bear market territory (generally a decline of 20% or more).
Keep in mind that most markets made their peak in October or November of 2007, and technically some have declined beyond the 20% threshold for a bear market.
What two major markets have declined the least?
Brazil (at -3%) and China (at -4%), neither of which are shown on this chart.
Global markets haven’t been entirely safe from diversification away from the United States. If we are entering into a global bear market, genuine caution must be used.
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