Tuesday, October 26, 2010

The $25 trillion recovery


Here's another milestone in the current global recovery: the market cap of global equities has risen $25 trillion from last year's low, a very impressive gain of no less than 100%. Millions of pessimists hanging out in cash since then have left a lot of money on the table.

2 comments:

  1. Also, the equity markets are now substantially outperforming many bond markets. While it is a fact that the vast majority of bond money will never move to equities, the size of those markets dwarf stocks and it would only take a small reallocation to move equities much higher. The liquidity is there. All it takes is the conviction. Fear has, until recently, ruled...should greed return, that conviction can happen quickly.

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  2. Evidence that the above is NOT occuring now comes from CNBC:

    GOLDMAN INCREASING SIZE OF 50 YEAR DEBT OFFERING

    The $250 million offering was so oversubscribed Goldman Sachs increased it over fivefold to $1.3 billion.

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