Since, the beginning of this year, World economy has been slowing down at faster rate but the only thing that kept rising during this period is US stock market. There is big disconnect going on between US stock exchange and rest of the world stock exchange.
If we track the performance of world stock exchange for past 1 year: (Jul 2011-2012)
Dow Jones Industrial Average (US) is up 3%,
S&P500 (US) is up 4%,
Nasdaq (US) is up 5%
Shanghai Composite Index (SSE) (China) is down 22%
Nikkei 225 (Japan) is down 15%
Hang Seng Index (Hong Kong ) is down 16%.
TSEC (Taiwan) is down 19%
FTSE 100 (UK) is down 5%
Euro STOXX 50 (Eurozone) is down 20%
CAC 40 (France) is down 17%
S&P/TSX Composite Index (Canada) is down 13%
S&P/ASX 200 (Australia) is down 9%
BSE Index (India) is down 9%
If we track the performance of world stock exchange for past 5 year: (Jul 2007 - 2012)
Dow Jones Industrial Average (US) is down 7%,
S&P500 (US) is down 11%,
Nasdaq (US) is up 9%
Shanghai Composite Index (SSE) (China) is down 47%
Nikkei 225 (Japan) is down 52.25%
Hang Seng Index (Hong Kong ) is down 16%.
TSEC (Taiwan) is down 25.26%
FTSE 100 (UK) is down 14%
Euro STOXX 50 (Eurozone) is down 21%
CAC 40 (France) is down 14%
S&P/TSX Composite Index (Canada) is down 21%
S&P/ASX 200 (Australia) is down 35%
BSE Index (India) is down 15%
As long as Fed keeps their money printing press "ON" US market will keep rising.
