I came across this Bloomberg article: Global Shareholders Have $27 Trillion Locked in Bear Markets
Someone has been doing a roundup of the global share markets and has come up with some interesting figures. I have no idea if they are correct or not, but I have no reason to doubt it so let’s play along and see what it all means.
Now let’s see if I can do the math here. I think I remember how.
If 40 markets with locked-in investments of $27 Trillion are in bear territory, meaning they have declined at least 20% since their last high (let’s call it a straight 20% to be conservative), then does that not mean that those investments have lost $5.4 Trillion?
If 19 markets with locked-in investments of $30 Trillion are in a correction, meaning they have declined 10-19.9% since their last high (let’s call it a straight 15% on average to keep the numbers easy), then does that not mean that those investments have lost $4.5 Trillion?
Let’s see how that adds up. 5.4 plus 4.5 is $9.9 Trillion. Let’s just round that up to an even 10.0 because there are another 14 markets counted in this Bloomberg article that are in decline and you would expect that it would end up as more than ten, but ten is a nice number to work with.
So, someone, somewhere, hopefully a lot of someones, is down $10 Trillion. That’s the same as $10,000 Billion, or the equivalent of TEN MILLION MILLIONAIRES ALL GOING BROKE AT THE SAME TIME.
Well, thank goodness it is not real money. Just numbers on screens. But I doubt that will be of much cheer to those hypothetical 10,000,000 millionaires.
Bulls and Bears? Pah!!! What it really is is La-La-Land, and pretty soon its bubble will go ‘pop!’, and it will disappear up its own Whoopsie.
Hmm… I wonder just how much more of a decline it would take for that to happen? Just how many million millionaires going broke would it take?