From Crisis to Confidence: A Reflection on 16 Years in the Global Equity Market

Introduction

Global equity markets have experienced significant growth in the past 16 years since the global financial crisis in 2008-2009. Despite facing challenges and uncertainties, the FTSE All World index has returned an impressive 216%, translating to an annualized return equivalent of 7.7% in US dollars. This growth reflects a journey from crisis to confidence in the global equity market.

Regional Performance

When examining the performance of global equity markets from 2008 to 2024, it is evident that there are divergences in performance within regions. The FTSE USA index achieved an annualized return of 11.1% in US dollars, outperforming other regions. On the other hand, the FTSE Developed index recorded an annualized return of 8.2% in US dollars, benefitting from its high exposure to US equities.

Impact on Individuals

For individual investors, the growth in global equity markets presents opportunities for wealth accumulation and portfolio diversification. Investing in equities allows individuals to participate in the growth of leading companies across the world and potentially earn attractive returns over the long term. However, it is essential for investors to conduct thorough research and seek professional advice to navigate the complexities of the global equity market.

Impact on the World

The robust performance of global equity markets over the past 16 years has contributed to economic growth and prosperity on a global scale. Companies have been able to raise capital through equity financing, fueling innovation, job creation, and economic development. Additionally, the growth of equity markets has facilitated international trade and investment, strengthening global economic ties and fostering collaboration between nations.

Conclusion

In conclusion, the journey from crisis to confidence in the global equity market over the past 16 years highlights the resilience and resilience of the financial system. Despite facing challenges and uncertainties, global equity markets have thrived, offering opportunities for individuals and driving economic growth on a global scale. Moving forward, it is crucial for investors to stay informed, diversify their portfolios, and seize the opportunities presented by the dynamic global equity market.