cheapest stock markets in 2015 header
Last year, the Telegraph gave us an interesting infographic of the cheapest stock markets in 2014 based on PE and CAPE ratios.

In this article I take another look at the major stock markets in the world and see how they are doing in 2015.

Money Supply Vs Stock Market Performance

A quick glance at any chart of money supply will show how levels of money always increase over time. This is consistent with the principles of inflation and the way governments print money in order to drive economic growth at sustainable levels. It can be interesting to watch money supply plotted against the stock market I think.

m2 money supply fred

When money is created, it must have somewhere to go. So it makes sense that a good portion of money supply will be directed back into investments, domestic businesses, and the stock market.

This has been the biggest macro trend over recent years and we have seen nearly all central banks print money (in the form of cutting interest rates and QE programs) in order to increase liquidity and drive growth back into the economy.

This increase in money supply has naturally helped stock markets recover from their 2008/2009 nadir.

Money supply

In the next chart from ieconomics, the US stock market has been plotted against the US M2 money supply. (Money supply is measured in billions of US dollars).

money supply vs stocks in US

 

Stock Markets 2015: Rest of the world

Europe

 

cheapest stocks eurozone money supply vs stocks

Germany

cheapest stock markets 2015 germany

China

money supply vs stocks china

Japan

money supply japan

France

money supply vs stocks france

UK

money supply vs stocks uk

Brazil

money supply vs stocks brazil

Russia

money supply russia

Singapore

money supply in singapore cheapest stock markets 2015

New Zealand

money supply in new zealand cheapest stock markets

For investors without direct access to these markets, they should consider ETFs which can track the individual stock markets of the countries mentioned above. They can also consider ADR shares, which are foreign companies that trade on US exchanges.

Data Source: Money supply and stock market data from ieconomics.com, dated February 2015.

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Summary
Article Name
Cheapest Stock Markets 2015 (15 Charts)
Description
A look at the cheapest stock markets in 2015. According to money supply data and stock market analysis there are plenty of cheap opportunities available.
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One comment

    • Fernando Lameirinhas

    • April 14, 2015

    • 11:29 pm

    • Reply

    Simple, very usefull and insightfull. Ver nice post. Congratulations!

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