I made a comparability of relative each day return of all the foremost inventory markets that embody US, UK, China, Hong Kong, Singapore, India, Japan and Korea. I discover that these indices diverged into two teams over the previous 10 years. One group that rises excessive to realize a return greater than 200% whereas the opposite fluctuates at about 0% – 50%.
I’m very interested in what are the causes for this divergence, and I wish to discover out if these indices regulate for dividends, inventory splits and so on. For so far as I do know lots of the firms listed in Singapore have a tendency to provide out dividends regularly, far more than the S&P 500. If the indices are usually not dividend adjusted, then the comparability just isn’t honest.
However aside from this, aside from the US why Japan and India inventory markets soar prior to now 10 years? What sort of insurance policies and innovation in these international locations that appeal to capitals and hopefully generate actual financial values? In distinction, China has seen the most likely one of many largest financial progress within the final decade however its inventory markets (Shanghai and Hong Kong) don’t carry out in addition to US, Japan and India in accordance with the chart. Can anybody provide some insights?