In October 2023, financial markets are experiencing a slew of changes that have the potential to have a significant impact on the global economy. To help investors and other financial observers stay on top of the rapidly changing landscape, GodzillaNewz has compiled 10 key charts that provide a comprehensive snapshot of the markets.
The first chart looks at the growth of the S&P 500. The index has seen a meteoric rise over the past year, with the index rising by an unimaginable 95%. This growth has been driven by strong technology sector performance and record-breaking corporate earnings. This chart paints a rosy picture for the future of the stock market and indicates the potential for continued growth.
The second chart looks at returns on the Dow Jones Industrial Average. The index has seen moderate growth over the past year, rising by about 14%. This indicates that despite the current bull market, investors remain cautious in their outlook on the equity markets, likely due to economic uncertainty caused by the pandemic. Nonetheless, the index is also showing signs of breaking out of its recent trading range which could signal higher returns in the months ahead.
The third chart shows the performance of the major currencies against the US dollar. The dollar has been the clear winner over the past year, appreciating against all major currencies. The euro, for example, has depreciated by a staggering 18% against the greenback. This trend is likely to continue in the coming months, given the global economic outlook and expectations of further quantitative easing from the US Federal Reserve.
The fourth chart focuses on the international bond markets. This chart shows how government bond yields have dropped across the board over the past year, with the 10-year Treasury yield falling to a historically low 1.1%. This reflects the widespread shift away from risky assets to the safety of bonds.
The fifth chart looks at the performance of the S&P 500 REIT index, which has seen impressive growth since the start of the pandemic. The index has risen by 39%, signaling investor confidence in the real estate sector and a potential rebound in the US economy.
The sixth chart looks at the performance of commodities over the past year. This chart shows that oil, gold, and other commodities have seen mixed returns over the past year as geopolitical tensions have shifted and global supply chains have been disrupted by the pandemic. Oil, for example, has fallen by 36% over the period.
The seventh chart focuses on the performance of emerging market currencies. The chart shows that most emerging market currencies have dropped substantially against the dollar. The Mexican peso, for instance, has depreciated by over 20% against the dollar over the past year. This indicates that investors remain wary of the global economy and unwilling to take on the inherent risk of emerging markets.
The eighth chart looks at the performance of technology stocks across the world. This chart shows that the tech sector has been a major driver of this bull market, with the Nasdaq Composite Index increasing by an astonishing 106%. This reflects the strong fundamentals of the technology sector and its importance in the post-pandemic world.
The ninth chart focuses on the performance of cryptocurrency assets. These assets have been among the best-performing investments of the year, with Bitcoin adding an eye-popping 634% since the start of 2020. This chart demonstrates the increasing acceptance of digital currency as an asset class and the potential for returns in this space in the years ahead.
Finally, the tenth chart looks at the performance of US housing prices. This chart shows that home prices have surged over the past year, with the average US home appreciating by 12%. This reflects the robust demand in the housing market and indicates that the housing market could be a key factor in the recovery of the US economy.
These 10 charts provide a comprehensive overview of the current state of the markets and provide a glimpse into the potential of future returns. As the pandemic continues to affect the global economy, these charts offer a valuable glimpse into the potential of the markets in the months and years ahead.