I reported in January that the total value of world stocks (based on data from the World Federation of Exchanges) reached a record high in December of $65.3 trillion and recaptured all of the global equity value that was lost due to the severe global recession and the various financial, mortgage and housing crises in 2008 and 2009. Scott Grannis reported this week that another measure of global equity values from Bloomberg reached an all-time high in recent weeks.
Consistent with those recent record highs for the market value of world stock markets, the MSCI World Index reached an important milestone yesterday by closing at a new all-time record high and surpassing the previous, pre-recession high in October 2007 for the first time (see chart above). Over the last year, the MSCI world stock market index increased by 17.5%, marking the 12th straight month that the world stock market index has registered double-digit gains on a monthly basis.
Bottom Line: The global stock market rally over the last five years to a record high yesterday for the MSCI world index has added back more than $36 trillion to world equity values since 2009, and demonstrates the incredible resiliency of economies and financial markets to recover and prosper, even following the worst financial crisis and global economic slowdown in at least a generation.