Today’s eye-popping financial market statistic is brought to you by John
Roque at Natixis Bleichroeder…
Since the U.S. stock market peaked in October 2007, the world’s equity
market capitalization has shrunk by 53%. If you’re counting at home, that’s $33
trillion.
So if misery loves company and you’re too depressed to look at your brokerage
account statements, maybe you can grab some consolation from knowing that
investors all over the world share your pain.
In fact, some poor folks have it even worse. According to Bespoke Investment
Group…
- Iceland is down a staggering 90% this year.
- Ukraine is off 76%.
- Bulgaria is lower by 74%.
In fact, 51 countries have experienced worse market declines than the U.S.
market’s 44% tumble. So are there any winners at all amid this global mess? Just
three…
This Year’s (Very Short) List Of Winners
Only Ecuador, Tunisia and Ghana have posted gains in 2008. Which is why I’m
pleased to announce my new investment service - The Ecuador, Tunisia, Ghana
Trader (trademark pending).
I’m being facetious, of course. But the point is that there are investors out
there who are so desperate to find a performing investment that they’re willing
to consider just about everything.
At times like this, you’ll often hear folks confidently booming out the
“Yeah, but this time, it’s different” line. I’ve long been an opponent of talk
like this. And I’ll tell you why…
“This Time It’s Different”… And Other Soundbyte-Friendly
Clichés
During the dot com boom, I was routinely told that I “didn’t understand the
new paradigm.”
And when the real estate market took off, I was called names for being so
stupid for not borrowing cheap money to buy spec houses and home sites in
so-called “can’t miss” places like Port St. Lucie, Florida - a city that now
boasts the dubious honor of having more than 11% of the homes in the foreclosure
process. Unemployment is also over 10% in the county.
But is it truly different this time?
Investors have endured and overcome a Civil War, two World Wars, and the
Great Depression. But now, the government seems to be in the process of bailing
out every poorly run business. In addition, we’ve got an incoming president that
Wall Street knows little about yet, as well as a rapidly changing financial
landscape.
The Game May Have Changed… But The Rules Haven’t
Dr. John P. Hussman, who runs the Hussman Funds, wrote a letter to
shareholders explaining precisely why we’re not in uncharted territory.
