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.
Track your stocks easily with the FREE Stock Portfolio Tracker excel sheet today
Kyith is the Owner and Sole Writer behind Investment Moats. Readers tune in to Investment Moats to learn and build stronger, firmer wealth foundations, how to have a Passive investment strategy, know more about investing in REITs and the nuts and bolts of Active Investing.
Readers also follow Kyith to learn how to plan well for Financial Security and Financial Independence.
Kyith worked as an IT operations engineer from 2004 to 2019. Currently, he works as a Senior Solutions Specialist in Insurance Start-up Havend. All opinions on Investment Moats are his own and does not represent the views of Providend.
You can view Kyith's current portfolio here, which uses his Free Google Stock Portfolio Tracker.
His investment broker of choice is Interactive Brokers, which allows him to invest in securities from different exchanges all over the world, at very low commission rates, without custodian fees, near spot currency rates.
You can read more about Kyith here.
- Jonathan Clements Unique Way of Dying. - September 12, 2024
- Sizing Up a Critical Illness Sinking Fund for a Singaporean Friend. - September 8, 2024
- A Table to Help my Older Brain Process this Mindef Change to the SAVER PLAN for SAF Officers - September 7, 2024
momo
Monday 27th of August 2012
Hi,
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...