Markets Going Down Around The World

This is a special Supplement we  created on Oct 5, 2014 to show clearly how the markets around the world are behaving. The only markets which have gone above the 2007 peaks are USA, German DAX & Indian SENSEX. USA and German markets have gone up because of trillions of dollars worth of money being printed by USA & Germany and with  close to zero interest rates.

India's  market is going up because  they have been having real growth of 5  to 7 % in the last 10 years and under Modi the growth will only accelerate. They are going to have  investments from Japan, USA, Australia, UK, Germany, France and even China. With 65% of the population  below 35, India is the country which will have the maximum growth in the next 10 years or 20 years.

USA 10 Year Chart    $575 Billion dollars worth of Margin debt  for stocks.  This is more margin than we had  at the peak in 2007. This margin  can  all  go down sharply and that is why we are worried about the coming decline in US market. Leverage works both in up and down markets.

DAX

CAC French Because of Socialist policies being followed in France, CAC has not gone above 2007 Highs. It will go below 2009 lows in the coming decline.

FTSE MIB Italian   3 Month  Going Much lower

FTSE MIB Italian 10 year  Will go below 2009 Lows

Japanese Nikkei  10 Year  Has not gone above 2007 Highs. 

Japanese Nikkei  3 Month  The only reason Nikkei has been going up is because they have been devaluing  their currency. It does not work in the long run. See also Japanese ETF in US dollars below

Japanese ETF  in US Dollars It never went above 2007 Highs. Will go below 2009 Lows

Shanghai   10 year never went above 2007 Highs

Hong Kong 10 year Did not go above 2007 Highs. Going Lower now

Hong Kong 3 Month Gave a SELL signal in early Sept 2014

Indian Market Sensex Best Looking chart went way above 2007 top

Indian Sensex  3 Month short term Sell

STOXX  600  10 year chart
The STOXX Europe 600 Index, Europe's leading Blue-chip index, provides a representation of supersector leaders in Europe. The index covers 600 stocks from 18 European countries: Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom. 

This index never went above the 2007 peak and has already given a SELL signal.  If you take an ETF based upon this index in US Dollars , it looks even weaker.

STOXX 600 3 Month chart

Markets around the world have been giving Sell signal since early Sept. This is why we feel that US market cannot be immune to what is helping around us. Europe is already in recession and Japan has really not recovered much since 2008 and China has been not growing much. We will accelerate on the downside now. We are entering new phase of a deflationary recession which will affect everybody around the world.