Monday, August 17, 2009

What happened to the recovery

Did I miss it?

From the FT...

Equity markets fell sharply on Monday after demand fears in China triggered one of the country’s largest one-day declines, while a recent decline in US consumer confidence was underlined by poor sales from Lowe’s.

The losses on equity markets were matched by falling commodity prices, driving investors from risky assets into the havens of dollar, yen and government bonds.

The Shanghai Composite lost 5.8 per cent, its biggest daily loss this year and 12th largest on record, with metals groups hardest hit after heavy selling of commodities. Copper on the Shanghai Futures Exchange fell by its 5 per cent daily limit.

6 comments:

  1. It's called bumping along the bottom, and will go on for five or ten years...

    B. in C.

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  2. You might have missed the FTSE-100 rising 35% from it's lows in March Alice - but the rest of us didn't.

    Puts yesterdays 1.5% correction into perspective doesn't it?

    Don't let it stop you writing sarky and overly dramatic headlines though!

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  3. Anon at 7:58, 35% rise over six months is very roughly a daily increase of 0.2%. Does that help with the perspective?

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  4. Anonymous @ 9:15 - more like 0.3% but if you annualise these returns you're getting 82% per year. That is as much growth as you can expect in a normal decade. Does that help with the perspective?

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  5. Anon @1.57, if it goes up by 85% it will be nearly were it was a year ago and if that continues it means by the time GB is voted out the index should be where it was when nulab came in. Thanks for putting it in perspective.

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  6. Yeah, this is a poor post. The markets have made an amazing comeback this year. This blip is meaningless, simply a minor correction.

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