Here is a nice chart showing different countries and their struggle with the bounce back from the Great Financial Crisis.
The chart shows the performance of 30 markets as measured by MSCI indexes, and of the MSCI All Country World Index, which includes all markets MSCI classifies as developed or emerging.
The X Axis shows how deep the plunge for the countries. As you can see the ones who was best insulated was Japan at –50% and the worse Ireland at > –80%
The Y Axis shows the returns since the market top in Oct 2007. Only 4 countries including Singapore and US is positive. The amazing thing was the PIIGS are still at 2009 doldrums.
How is it that Singapore is above? Isn’t the index high at nearly 3800 and we are so far away? Its due to dividends. Articles here and here will show that nearly 40% of total returns come from dividends.
This chart is rather depressing. Had we invest in our local market such as Korea or Hong Kong or Canada, it could be a rather different matter.
Monday 27th of August 2012
SGD/USD increased more than MSCI Singapore/MSCI USA during this period. So now we know how Singapore ended up higher than USA in the chart...