Below we highlight the year-to-date changes of major equity indices and ten-year government bond yields for a number of countries. As shown, the majority of equity indices are down, while the majority of bond yields are up (bond prices down). Across the globe, stocks and bonds haven't really worked this year, as the money has all flowed into commodities. China's Shanghai Composite is still by far the worst performing index at -45%. China is followed by India, Hong Kong, Italy, France and Germany. The US has held up relatively well, ranking 6th out of 21 countries analyzed in terms of market performance. Mexico, Brazil, Canada and South Africa are the only countries with positive stock market returns.
Bond yields have risen the most in Singapore, where their 10-year government bond rate has gone up 47% in 2008. South Africa, Japan, the UK and Switzerland trail Singapore with the highest rises in yields. Again, the US hasn't done poorly when compared to other countries. With yields up just 6% this year, government bonds here haven't gotten hit nearly as hard as elsewhere.
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