Revisiting March lows
No, not in the way you think. Tuesday marked the one-year anniversary of world stocks hitting what appears to be their post-financial crisis low. The index was the MSCI all-country world index. The low was hit on March 9, 2009.
At the time, many investors reckoned their world was collapsing. Stocks had fallen close to 60 percent in a little more than 16 months. But the low proved to be the start of a remarkable rally that brought the index back up 80 percent until January this year.
All is not well on equity markets at the moment, given worries about European debt, the end of special central bank liquidity programmes and questions about the sustainability of the U.S. economic recovery. The MSCI index seems to be having a hard time staying in positive territory this year.
And there are also investors such as Crispin Odey of hedge fund Odey Asset Management who have started worrying about whether the market will regress to its lows. He recently told his clients in a note:
“Having hoped that March of last year might have proved to be the long term bottom for the developed markets, I am now much less sure.”
For now, though the lows remain a year past and the MSCI index is around 73 percent higher than it was then. Happy Anniversary.