WORLD STOCK MARKETS INDEX

1980 to 2015 (36 years)

NYSE                    1000 to 16,400 (peak at 19,000)

FTSE                     400 to 6104 (peak at 7,100)

German SE           400 to 10,229 (peak at 12.370)

Japan SE              8,000 to 18,400 (peak at 38,916 in Dec 1989)

Other than Japan, NYSE, FTSE and GSE peak lately (less than 12 months)

MALAYSIA STOCK EXCHANGE (KLSE)

                             Index              RM/USD       Market Cap (USD)

1993                     1200               2.50              480 billion

1998                     1400               3.20              390 billion

2015                     1700               4.20              360 billion

Our stock market in USD terms had loss USD120 billion over the last 22 years.  What have we done wrong?

If I am a US fund manager, should I put more money in Malaysia? Will it shrink further?

HOW DOES THE STOCK MARKET LOOKS LIKE OVER LAST 36 YEARS?

NYSE, FTSE & GSE charts looks great.  That's why all the professors and experts said (proven), market will goes up in the long term.  At least for the past 36 years.  Before that, not much of an action compared with the last 36 years.  Opps, I have not mentioned the gearing though.  I think it is about 150% to about 300% (total debt over GDP).

Can we say the same for KLSE in US Dollar terms? Well, the chart looks the other way round.  Aren't we not working harder and getting smarter?  Not so, according to the share market.

Well, since 1980s, global debt has been going up one straight line like their stock markets (Except Japan, the chart stops at end of 1989).  JAPAN already formed its peak in Dec 1989.  The rest is history.  Will China be another one? I mean in USD terms.

JAPAN EXPERIENCE

                              Index            Yen/USDollar       

1980                     8,000              300

1989 (Dec)         38,900              150

2015                   18,400              120

What about its market cap in USD?  I think we need to do more research.

WHAT WILL THE STOCK MARKETS FOR THE NEXT 20 YEARS?

For NYSE, FTSE and GSE, I believe, it will have a similar chart like JAPAN.  Because, it was Japan that created ZIRPs, and QEs (luckily it has surplus from export).  

So, Japan had formed a Fuji mountain in late 1989.  

The trillion dollar question is will the rest of the world stock markets form another Great Fuji mountain?  You can get the asnwer if you refer to the US 30-year Treasury Bonds chart (the yield peak at 1981 at about 15%).

www.sosfinancialplanning.blogspot.my (look out over the next few days, latest) : Just updated on 20/9/15 at 1.38am, it's called THE GREAT PUZZLE

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