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Eric Lam Mar 17, 2011 Courtesy of www.financialpost.com
A harsh spotlight has been trained on the Nikkei Index this week, but the massive losses incurred since Japan suffered its worth earthquake in history have merely intensified a long, slow decline over the past 15 years.
At its peak in the early ’90s, the Nikkei was more than 10 times the level of the S&P/TSX Composite, Doug Porter, deputy chief economist with BMO Capital Markets, said in a note.
But by 2008, the two indices had crossed, and the performance gap between them has only widened since.
“Oh, how the world has changed,” Mr. Porter said. “Since last spring, the TSX has put some serious daylight between itself and the Nikkei, which has only gapped out this month.”
To further contrast the two, in the past 15 years the TSX has grown at an average annual rate of 7%, while the Nikkei has declined on average 4.3% a year.
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