Most international stock markets are on the upside
and some are moving up at an unsustainable rate. For instance, the
Chinese stock market as measured by the SSE Composite Index is up
over 500 percent in just over two years. By comparison, it took
the NASDAQ five years (1995 - 2000) to increase that amount.
The Indian stock market has gained over 500 percent in four years
and Brazilian stocks have increased over 600 percent in five years.
Little watched Mexican stocks have surged almost 500 percent since
early 2003. And Russian stocks have climbed almost 250 percent since
May 2005.
Be Careful With Bubbles
All price bubbles eventually burst and when they do, the resulting
downsides can inflict huge losses on investors who bought at or
near the top. Beware of these stock market bubbles.
| Stock
Market Bubbles |
| Market |
Symbol |
Begin
Upside Date |
Begin
Upside Value |
Highest
Value Date |
Highest
Value |
%
Upside |
NASDAQ COMPOSITE (U.S.)
|
|
1/3/1995 |
743.58 |
3/10/2000 |
5,048.62 |
578.96%
|
| SSE Composite Index (China) |
|
7/11/2005
|
1,011.5 |
10/16/2007 |
6,092.06
|
502.28%
|
| BSE SENSEX (India) |
|
4/25/2003 |
2,924.03 |
10/15/2007 |
19,058.67 |
551.79% |
| IBOVESPA SAO PAULO
(Brazil) |
|
10/14/2002
|
8,451 |
10/9/2007
|
63,549 |
651.97% |
| IPC (Mexico) |
|
2/12/2003 |
5,763.87 |
10/12/2007 |
32473.47 |
463.40%
|
| RTS Index (Russia) |
|
5/16/2005 |
633.69 |
10/15/2007 |
2,176.90 |
243.53%
|
| NOTE: All price data except RTS
Index are from www.finance.yahoo.com. |
Related Articles:
Brazilian Stocks
buyupside.com
BRIC (Brazil, Russia, India and China) Portfolio
Indian Stocks
Many Chinese Stocks are Available to U.S.
Investors
Price Patterns - A
Bubble Top Is an Extreme Pattern
Russian Stocks
Posted October 19, 2007.
|
|
