Chart of the Day: Global Post-Crisis Retracement Levels

Just a bit of big picture perspective here courtesy of Chart of the Day. It shows various market retracements in the post-crisis period:

For some perspective on the post-financial crisis rally, today’s chart illustrates how much of the downturn that occurred as a result of the financial crisis has been retraced by several major international stock market indices. 

For example, the S&P 500 peaked at 1,565.15 back in October 9, 2007 and troughed at 676.53 back on March 9, 2009.  The most recent close for the S&P 500 is 1,563.77 — it has retraced 99.8% of its financial crisis bear market decline.  As today’s chart illustrates, China (Shanghai Composite), Japan (Nikkei 225), India (S&P BSE Sensex), Germany (DAX), France (CAC 40) and the UK (FTSE 100) are all above their financial crisis lows (i.e. above 0% on today’s chart) while none of the aforementioned countries are currently trading above their respective pre-financial crisis peak (i.e. none are above 100% on today’s chart). It is interesting to note that the US (epicenter of the financial crisis) has outperformed the other major stock market indices while China has lagged.”

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Cullen Roche

Mr. Roche is the Founder of Orcam Financial Group, LLC. Orcam is a financial services firm offering research, private advisory, institutional consulting and educational services.

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  • http://www.nowandfutures.com bart

    “the US (epicenter of the financial crisis) has outperformed the other major stock market indices”

    Deleveraging being virtually dead plays a big part (black line is almostr back to zero)

    http://www.nowandfutures.com/images/deleveraging_facts_roc(fed).png

  • Jim

    Looks like the Bank of Japan still has more work to do.

    Nice job on Bloomberg, Cullen.