Monday, December 27, 2010
Behavior of World Indices in 2010
The European Indices rallied in 2010 but the magnitude is less when compared to the Asian Markets. Many Indices in Asia moved past their 2008 highs. Srilankan Stock indices moved passed their 2008 high. Indian Market came very closer to their high, but so far it has not crossed that levels.
Since Stock Market prices reflect the future perception of the Market, continuous underperformance foretell a big correction in China’s Stock Markets. If the fastest growing economy in the world, china, doesn’t see their indices move up, it cannot sustain its growth.
In US, the markets rallied, but is has not rallied as much the Asian markets moved.