I selected the 19th of October 2009, simply to emphasise my point. All of the above indices are stagnating.
( S&P 500 in blue, Bovespa in red, BSE Sensex in green, FTSE 100 in orange, Shanghai Composite in brown and CAC 40 in green)Perhaps, the ''sugar high'' of multiple stimulus packages is starting to wear off, and issues like sovereign solvency and corcerns over ever expanding government debt have resurfaced.
To be fair, markets have had a fantastic run from their March 2009 lows.
As thing currently stand, stock market valuations seem to have factored in a total recovery, while ignoring many troubled components of the global economy!
Markets face a strong headwind in 2010, and the risk reward ratio clearly does not favour the long only investor.