From December and above since the beginning of 2012 the market wind has changed. Stock exchanges are all positive and earnings are consistent. There is no shortage of unknowns but the two SuperMarios worked a miracle: Draghi, by injecting liquidity into the European banking system, prevented the crisis from becoming systemic and averted the credit crunch, Monti with his reforms restored Italy's credibility and contributed to overcoming the euro crisis. Naturally volatility and difficulties remain, Greece in the lead, but the perception of risk is different.
Investors are back on the stock market and the results can be seen. All stock markets in the world are positive. Since last December 30 Milan with the Ftse/Mib has gained 8,95%, above the European average (the Euro Stoxx 50 is up by 8,57%) but less than the Frankfurt Dax (14,72%) which remains the leading index in all of Europe. America is also doing well: the S&P, which is now much more representative of the Dow Jones, gains 6,78% and the Nasdaq (the high tech stock) even 11%. The Brics made a big splash and made a strong recovery over last year, especially China and Brazil. Despite fears of a real estate bubble, the Chinese stock market indices report increases of between 14 and 16%, while Latin America records the exploit of the Bovespa (the Brazilian stock exchange) which has gained 15,2% since the beginning of 2012 on the same wavelength as the Argentine Stock Exchange. Even the stock exchanges in Eastern Europe are growing sharply: the best is the Polish one which has gained 2012% since the beginning of 18,8, but Austria, Turkey and Russia are also doing very well despite the political uncertainties. The DJ Stoxx BRIC 50 index has gained 18,06% since December 30th.
The ETFs listed on Piazza Affari are also celebrating. Among the most effervescent those on Bovespa, China, Russia, Turkey, Vietnam, India. It is needless to repeat that risk is congenital in equity investment and that before venturing into the Stock Exchange it is advisable to listen to the advice of professional consultants, preferably independent ones.
