Wednesday, 4 January 2012

2011: Not Such a Good Year, Unless your Venezuelan


Out of 52 popular stock market indices all but 4 were nil or negative. The MSCI world stock market index fell by an impressive 8.5% outshining the developing markets index by 0.9%.

As you would expect the EZ did particularly badly (-17%) with Greece hitting -50%.

Venezuela managed to take the most improved award climbing 79.1%, due to economic growth, improved confidence after the demise of Hugo Chavez and a CPI increase of 28% due to the thin market nature of Venezuela causing price volatility that hopefully will less with the incumbent president, hopefully! This will be especially true if anti-capitalism laws are curtailed more in the future.

This change in fortune due to presidential change may in some way lay down a pattern for growth across the North African Arabic countries with new more democratic governments and more liberal capital markets. Expect to see continued volatility in their markets as the transition continues, with the potential for put and call options flourishing in such uncertainty.

Stockmarket index changes for 2011:



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