Friday, January 1, 2010

MARKET PERFORMANCE OVER THE PAST TWO DECADES.

Please download 2010 Calendar with
NSE Trading Holidays marked on it.





Wishing you the very best for the New Year.
Completion of a decade, is a good time to look at the performance of the Key Indices over a longer time frame – though we now have more Day Traders, then long term investors.
For the purpose of this study, I have considered data for two decades for Indices, but could not do the same for stocks, as complete data is not available. For the decade that just ended, YOY increase/decrease has been given to highlight the fluctuation over the decade.
CONCLUSION:
Had it not been for the stimulus led recovery in the last year, the figures given above would have looked worst. Conventional wisdom, that Gold and Stock Prices are inversely related remains unchanged.
Performance of US, Europe and Japan Indices continues to be bad. In case of India, the returns have nearly halved compared to previous decade, but the returns have been better than in China.
I hope the data given above, helps you to maintain correct perspective of things when we are reminded of all good things happening around us.

Ketan Asher.

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