After managing to stay even for the first 3 and a half months of 2012, the Spanish stock market has been on a steady decline since then. The benchmark Spanish equity index, the IBEX 35, is down almost 28% over the last 2 and a half months. This moves it into third place for the worst performing benchmark equity indexes in 2012. Here's the top 10:
Let's review our chart showing the performance of the PIIGS benchmark equity indexes going back to the beginning of 2011:
Irish equities have managed to hold up reasonably well over the last year and a half while the remaining PIGS (+Cyprus) have all sunk to new lows. If we expand the time horizon back to 2007, the declines become even more pronounced.
The chart above has some aesthetic issues that we're working on adding functionality to clean up, but we don't think that these issues diminish the astounding nature of the data itself. To give these numbers some perspective, the total decline from peak to trough of the DOW during the Great Depression was about 85%. Cyprus and Greece are already beyond that figure and Italy is steadily approaching it. Portugal and Spain are not far behind.
Usually I never comment on blogs but your article is so convincing that I never stop myself to say something about it. You’re doing a great job Man, Keep it up.
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