Global markets 5 years after Lehman collapse

Global marketsEuropean equities have returned 135.3% in the aftermath of the historic collapse of Lehman Brothers in 2008, research shows.

The Russell Developed Europe Index lost 43.3% between September 15, 2008 – when Lehman declared bankruptcy  and March 9, 2009, when markets rebounded. The 135.3% return came between this date and September 10, 2013.

Russell Investments produced the research to commemorate five years since the collapse of Lehman Brothers Holdings, the global financial services firm and the fourth largest US investment bank at the time.

In the months following the collapse global equity markets plummeted to reach an all-time low on March 9, 2009. Since this date, global equity markets have had a measurable and sustained recovery, Russell says.

The Russell 3000 Index, representing the broad universe of US stocks, lost 39.3% between September 15, 2008, and March 9, 2009, and then rebounded with a 167.7% return by September 10 this year.

Between the rebound in March 2009 and up until September 10, 2013, Ireland returned 269.7%, Sweden 258.2% and Norway 193%. These were the index leaders.

The bottom three performers were Portugal with 34.7%, Spain with 59.5% and Italy with 60.1%.

The Consumer Discretionary sector, with a return of 218%, led all sectors within the Russell Developed Europe Index between March 9, 2009 and September 10, 2013.  The Utility sector – returning 52.3%  was the bottom performing sector.

Wouter Sturkenboom, investment strategist with Russell Investments Europe, says: “While the US stock market performance has led, the equity market rally since March 2009 has been broad-based as well as global. Even areas such as emerging, which have faced challenges in recent months, have logged strong performance [132.6%] since 2009 market lows.”

©2013 funds europe