Paradox in World Stock Markets
We are currently living a paradox in world stock markets, where US stocks are at record highs and, instead, European stock markets are closer to the minimum.
The French CAC40, with a minimum of 2,800 points in 2009 and up to 6100 points in 2008, currently trading at 4347 points. The German DAX, with a minimum of 3,900 points in 2009 and up to 8000 points in 2008, currently trading at 10190. The IBEX 35 Spanish, with a minimum of 2,800 points in 2009 and up to 6100 points in 2013, currently listed on 8332 points. The Dow Jones unidense state, with at least 7,500 points in 2009 and a maximum of 14000 points in 2008, currently trading at 18404 points.
Taking that as data example we see that a country acted decisively against the crisis as the US has its bag at record highs, Germany, who really suffered the crisis has its bag at historic highs, and France and Spain, which have suffered the crisis economic very strongly and showing doubts about their ability to get out of it have their bags close to the minimum.
And is that Europe has not come nowhere near the crisis, except Germany, there have been no measures have been time to protect the productive and entrepreneurial destruction has been very strong.
Can the Dow Jones continue to rise? A possible fall of the Dow Jones European stock markets imply?
The Dow Jones will continue to rise or remain high while monetary policy does not harden and interest rates rise, at which time there will be a correction. European shares rise as their economies start to recover.