Forgotten among the cryptocurrency mania of 2017 is the fact that global stocks achieved records never before seen
By far the biggest growing sector in the markets was of course cryptocurrencies, with several achieving gains of 2000, 5000, and even 10,000%.¬† In fact Bitcoin alone started the year just over $1000 per coin and at one time in December it had crossed over $20,000.
But forgotten in all of this has been the historic moves in the equity markets.¬† And according to two reports out today on Dec. 29, not only are nearly all global stock markets closing out the year at all-time highs, but for the first time in history they have achieved 13 consecutive months of positive gains.
Indeed, markets were set to end 2017 in a party mood on Friday after a year in which a concerted pick-up in global growth boosted corporate profits and commodity prices, while benign inflation kept central banks from snatching away the monetary punch bowl. As a result,¬†the MSCI world equity index rose another 0.15% as six straight weeks and now 13 straight months of gains left it at yet another all time high.
In total,¬†world stocks haven’t had a down month in 2017, with the index rising 22% in the year adding almost $9 trillion in market cap for the year.
Putting the year in context, emerging markets led the charge with gains of 34%. Hong Kong surged 36%, South Korea was up 22% and India and Poland both rose 27% in local currency terms. Japan’s Nikkei and the S&P 500 are both ahead by almost 20%, while the Dow has risen by a quarter. In Europe, the German DAX gained nearly 14% though the UK FTSE lagged a little with a rise of 7 percent.
Craig James, chief economist at fund manager CommSec, told Reuters that¬†of the 73 bourses it tracks globally, all but nine have recorded gains in local currency terms this year. –¬†Zerohedge
And as the chart shows above…
Unless the world comes to a very serious end in the next few hours, global equity markets are about to do something they have never done before…¬†rise for 13 consecutive months.
Not one losing month in 2017…
It has been impossible for anyone to bet against the stock markets this year as central banks had ramped up their buying of equities to a whopping $200 billion per month.¬† And even if the Fed, ECB, and Bank of Japan follow through with their tapering of markets as promised in previous FOMC announcements, the likelihood of this having any strong affects on stocks over the next few years is fairly small.
It seems that the only real catalyst that could halt the movement of stocks going forward would be a massive black swan, or the introduction of liquidity problems that were similar to what brought about the financial crisis of 2008.¬† But the chance of this occurring may actually be larger than analysts believe, and it will depend upon whether corporations follow through with their pulling cash out of foreign institutions and bring it back to the U.S. due to the newly passed tax reform bill.
Kenneth Schortgen Jr¬†is¬†a writer for¬†The Daily Economist,¬†Secretsofthefed.com,¬†Roguemoney.net, and¬†Viral Liberty, and hosts¬†the popular¬†youtube podcast¬†on Mondays, Wednesdays and Fridays.¬†Ken can also¬†be heard Wednesday afternoons giving an weekly economic report on the¬†Angel Clark radio show.