Global Equity Markets Post Global Financial Crisis
Market Performance Since 2008-2009
Global equity markets have experienced a significant resurgence since the global financial crisis that rocked the world in 2008-2009. The FTSE All World index, which measures the performance of global equities, has seen a remarkable return of 216% since the crisis, translating to an annualized return of 7.7% in US dollars. This impressive recovery demonstrates the resilience and strength of the global financial markets.
Divergences in Regional Performance
Despite the overall positive trend in global equity markets, there have been noticeable divergences in performance within different regions. For instance, the FTSE USA index recorded an annualized return of 11.1% in US dollars, outperforming the global average. On the other hand, the FTSE Developed index posted a return of 8.2% in US dollars, benefiting from its substantial exposure to US equities.
Impact on Individuals
As a consumer and investor, the robust performance of global equity markets can have a direct impact on your financial well-being. If you have investments in equities, particularly in regions like the USA, you may have seen significant growth in your portfolio over the past decade. This could potentially lead to higher returns and increased wealth accumulation for individuals with exposure to these markets.
Impact on the World
The strong performance of global equity markets post the global financial crisis has broader implications for the world economy. A thriving stock market is often reflective of a healthy and growing economy, indicating confidence and stability among investors. This positive trend can lead to increased business investments, job creation, and overall economic growth on a global scale.
Conclusion
Global equity markets have experienced a remarkable recovery since the tumultuous times of the global financial crisis in 2008-2009. The impressive performance of indices like the FTSE All World demonstrates the resilience and strength of the financial markets. As individuals and as a global community, we can benefit from the positive impact of robust equity markets through increased wealth creation and economic growth.
