The Markets Are Making New Highs - All Must Be Well?

Which countries have recouped all financial crisis losses?

For some perspective on the post-financial crisis rally, this chart illustrates how much of the downturn that occurred as a result of the financial crisis has been retraced by several major international stock market indices.

 

130330 Major Market Rally Percent Retracement from Low

Based on work by Chart of the Day.

For example, the S&P 500 peaked at 1,565.15 back in October 9, 2007 and troughed at 676.53 back on March 9, 2009. With it's new high, it has retraced all of its financial crisis bear market decline.

As this chart illustrates, Germany (DAX), the U.K. (FTSE 100), and India (BSE Sensex) have recovered most of the losses suffered.  Meanwhile, China (Shanghai Composite), Japan (Nikkei 225), and France (CAC 40) have lagged. 

While all of these countries are trading above their financial crisis lows (i.e. above 0% on the chart), none are currently trading above their respective pre-financial crisis peak (i.e. none are above 100% on today's chart), except for the U.S.

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