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Year Ended 12/31/2010 -- Stock Market this year.


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.

Index
1/1/2010

12/31/2010

%






DOW  JONES
10492

11577

10.34%






FTSE
5412

5899

8.99%






DAX
5975

6914

15.71%






CAC
3936

3804

-3.35%






NIKKEI AVG.
10609

10228

-3.59%






HANG SENG
21860

23035

5.38%






CANADA
11847

13443

13.47%






MADRID GENERAL
1248

1003

-19.63%






ATX
2495

2904

16.39%






STRAITS
2897

3190

10.11%






AUSTRALIA  S&P/ASX
4864

4745

-2.45%






DJ RUSSIA TITANS
5575

6744

20.96%






SHANGHAI COMPO.
3264

2808

-13.98%






SENSEX
17464

20509

17.44%






INDONESIA
2534

3703

46.13%






KOSPI
1682

2051

21.93%






TAIWAN
8188

8972

9.57%






BOVESPA
68588

69304

1.04%






ARGENTINA
2320

3523

51.85%






SBI TOP
982

850

-13.44%






THAILAND
734

1032

40.60%


All the news channels, business papers and so called gurus always talk about  China, India, Japan &  U.S.  but if we look on the table then we can see markets like Argentina , Thailand, Indonesia, 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 Shanghai, 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 Madrid but difference is China is not facing that type of economical  problem what  Madrid is facing.

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.





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