Hung, drawn and (second) quartered
By any standard the second quarter of 2009 was remarkable. Here are some numbers to chew over as the third quarter gets under way:
— World stocks as measured by the MSCI All-Country World Index had their best quarter since the benchmark was first compiled in 1988.
— The world index gained 21.2 percent for the second quarter. Its nearest “competitor” was the fourth quarter of 1998 when it rose 20.66 percent.
— Much of the index’s gain this quarter came in the first two months. The index was essentially flat in June as investors began trading in a tight range.
— Emerging markets were the main driver. MSCI’s sub-index for the sector gained 34.3 percent for the quarter, also a record high. Asian shares have been among the stars, with the MSCI Asia-Pacific ex-Japan index rising 33.7 percent. This was more than twice the gain on the U.S. Standard & Poor’s 500 index.
— A big decliner was volatility. The Chicago Board Options Exchange Volatility Index, often called Wall Street’s fear gauge, fell below 30 percent at the end of the quarter to its lowest level since before the collapse of Lehman Brothers.
— Over the quarter the VIX has lost 40.3 percent, reflecting growing confidence among investors that equities have ended the tumble of the past year or so.
