Stock markets were little bit mix in 2010. Where some markets give extra-ordinary return & some give negative returns. Over all average market return is normal. But for countries who are facing the problem of high inflation, for them the return is not something to cheer, in fact it was a bad one.
All the news channels, business papers and so called gurus always talk about
China, India, Japan & but if we look on the table then we can see markets like U.S. Argentina , Thailand, , they gave extra-ordinary returns than so called big markets. Some big banks and institutes are making huge profit from these markets, when others who are not so smart they are biting their hands. Indexes like Indonesia , Nikkei, CAC gave negative returns. Their domestic economical effect may be a cause for this. If we think about yearly basis then Chinese index disappoints us very much as well as Shanghai Madrid but difference is China is not facing that type of economical problem what is facing. Madrid
I was looking on German DAX Index, it is quite outstanding comparing to other biggies. It was not corrected in a big way in 2010 at all. Actually I think
Germany is the biggest gainer in this economic turmoil of Europe and their stock market is just reflecting that.
SBI TOP, Slovenian index, shows completely different picture from German DAX.
It is moving against the wave, may be it has some domestic issues. It is facing negative effect till October, then it moved up and made the top in November but again selling pressure came and in spite of making up move again it cannot touch its November high in December. I will be looking on it in future.
Comparison of stock market return with others in 2010
Now let’s compare the stock market return with other investment opportunities. I take Indonesian JKSE for this considerations. JKSE is one of the best market on the basis of yearly comparison. It gave a return of more than 40%, which is quite outstanding of the fact that other Asian giants are not near to it.
Let first compare with Gold market. After listening so much about Gold and seeing nearly 30% yearly price appreciation I want to compare it with returns of JKSE. JKSE’s return is even more than Gold. Though in May-June period it was in little bit pressure as it reduces from Gold return, but year end figure is quite better. It is quite interesting to see that form august Gold and JKSE move more or less in same direction.
As we saw in past price of crude sometime followed this stock market, this year it also did this. In February and in May it completely follow the up move of JKSE. When a good story is here, a good story is there too .
This year the movement of Treasury Yields and stock index is a little bit mix up. Sometime it follows the index and sometime not. Actually I think Treasury Yield couldn’t read the stock market quite well. And also there are lot of panic investors as well as countries, who are not finding any other opportunities to invest their reserves.
Who is the winner in 2010 ?
Though in comparison with these Gold, Crude and 10 year U.S. Treasury yield, JKSE is the winner. But when we see the Stock Market’s average return for 2010 and compare it with other markets, then the picture is quite different. In year 2010 Commodities are the winner, when I see it on average basis. As I told in my previous writing that commodities like Copper and Gold gave nearly 30% return, where Silver and Palladium gave more than 80% return. As I don’t follow the Commodities, so I cannot give details about them but I am sure they will be more or less ends up in high note. So average returns of commodities in 2010 financial market is more than Stock Market. Actually general traders normally don’t look on these commodities so it is not very common, especially in new Emerging countries.
As we know when stock market will be in trouble, investments will go in other more secured areas. But sometime this general rule in not followed and then it becomes pretty hard to catch the move.
Happy New Year to everyone.
NOTE : Please see the disclaimer below this blog.