Friday, April 27, 2012

Today's Major Market Move: Venezuelan Stock Market Up 293% Since January 2011

In what has to be one of the most astounding performances by a stock market over a 16 month time frame, Venezuelan equities have shot up 293% since January of 2011. We've featured the Venezuelan stock market as the subject of our "Major Market Move" posts no less than seven times (make that eight now). Here's the line chart of the benchmark Venezuela Stock Market Index:

Click here to go to the live chart.
 As we've mentioned in many of those seven prior posts, the main driver for the run up in equities is the cancer afflicting Hugo Chavez and the prospect of his passing in the near future. Investors are hoping that the subsequent regime will provide for a more favorable business environment however we view this as a huge gambit on a regime that has neither A) taken power yet nor B) indicated what form it will take.

The latest news on the status of Chavez's health has indicated that he will require additional cancer treatments after having just returned from being treated in Cuba 2 days ago (here's a link to a few more details from the BBC).

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