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To gain some perspective on the post-GFC rally, the chart of the day illustrates how much of the GFC downturn has been retraced by the major international stock market indices. For starters, the S&P500 peaked at 1,565.15 back in 2007 and troughed at 676.53 in 2009. Now, the most recent close for the S&P500 is 1,652.35 - it has therefore retraced 109.8% of its GFC decline. As the chart illustrates, China (Shanghai Composite), Japan (Nikkei 225), India (S&P BSE Sensex), Germany (DAX), France (CAC 40) and the UK (FTSE 100) are now all trading above their GFC lows (>0% on the chart). Interestingly, the US, which was the epicentre of the GFC, has outperformed the other major indices. China on the other hand, which played a substantial role in supporting global growth during the GFC, has lagged to the point where it only trades 8.3% above its GFC lows. (VIEW LINK)


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