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The Best Performing Stock Market in 2007

Recs

25

October 23, 2009 – Comments (7)

I wonder if any Fools know what the best performing global stock index was in 2007, gaining an astonishing 12,000% during one twelve months span?  If you know the answer, perhaps you also know the reason for its spectacular success, and its 2008 results.

I'll provide the answer in a few hours if no one knows.

David in Qatar

7 Comments – Post Your Own

#1) On October 23, 2009 at 5:04 PM, MustBNuts (31.83) wrote:

Google works real well, doesn't it?  I found the answer but am NOT going to tell.  "At this point Austrian economics makes its contribution to our story."  Rec #2 here....

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#2) On October 23, 2009 at 5:32 PM, miteycasey (30.36) wrote:

As a guess I'd say Iceland.

I know they were hit hard when the banks crashed.

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#3) On October 23, 2009 at 5:39 PM, Judochop172 (25.41) wrote:

Zimbabwe

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#4) On October 23, 2009 at 5:47 PM, davejh23 (< 20) wrote:

I'll also guess Zimbabwe.  I believe the rapid run up was caused by rumors that Zimbabwe was planning to buy the US.  Mergers and acquisitions can cause this kind of volatility.

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#5) On October 23, 2009 at 6:08 PM, whereaminow (20.41) wrote:

LOL @ davejh23

Yes, it was Zimbabwe. The market rally was fueled by a huge increase in the money supply. It was also a cover for real economic distortions that were plaguing their economy.  Inflation for 2007 was as high as 1800%.  The gains made in 2007 were quickly wiped out when reality set in.

It is yet another example that the stock market does not always reflect real economic conditions.  Also, stock investors can be deluded by monetary base expansion, which gives the impression of wealth even when no new wealth has been created.  The tricks of the money cranks merely shuffle the wealth around, giving a temporary illusion of prosperity. 

I can only imagine the dismay of the Zimbabwean verion of goldminingxpert as he tried to short such a rotten market, as their central bank drives it higher and higher.  It's not enough to be right about company fundamentals.  You also have to understand the root of the current price rises on the exchange.

David in Qatar

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#6) On October 24, 2009 at 12:19 AM, Sozurmama (22.66) wrote:

I can only imagine the dismay of the Zimbabwean version of goldminingxpert as he tried to short such a rotten market

Granted i am significantly intoxicated right now, but this is my favorite quote this week.

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#7) On October 24, 2009 at 2:35 AM, abitare (34.56) wrote:

guessing Zimbabwe

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