Tuesday, May 21, 2013

Oooh Ooooh: British Sovereign Yields to 1742--Chart

We dipped into some of Global Financial Data's public work on the Berlin Stock Exchange ca. 1923. Link below.
They probably have stats on the Denarius/Shekel in A.D. 70.
From FT Alphaville:

Everlasting credit, the long view
From historical chart specialists Global Financial Data — the yield on perpetual Consols versus the stock of UK sovereign debt…all the way back to 1742. Click to view….MORE (chart, discussion)
Unfortunately no discussion of the convexity of an instrument that has this kind of duration.

Here's part of that October 2008 post [the DJIA was up 11% that day]:
"Ja, ja, So Your U.S. Market is Up a Bit, Ever Hear of Berlin, 1923?"

...It was while skimming the GFD list that this popped out (remember this is inflation adjusted!):

Best and Worst Investment Periods in Germany

What were the best and worst months in the history of the German stock market? The most obvious factor is the importance of the hyperinflation of 1922 through 1924. The data have been calculated in real returns, adjusting for inflation during the hyperinflation of the 1920s, and as you can see, the hyperinflation provided investors with both strong returns and dismal returns, though more of the latter. The dates outside of the 1920s which registered as among the best and the worst are conspicuous, October 1949 for the stabilization of the German financial system, November 1918 for the end of World War I, September 1931 in the middle of the collapse of the German economy, and of course, October 1987.
Best Months Percent Return Worst Month Percent Return
September 1923 99.12% August 1922 -43.90%
December 1922 67.91% December 1923 -31.68%
June 1923 60.38% July 1922 -29.94%
August 1924 47.66% August 1923 -29.32%
November 1923 38.25% November 1919 -29.26%
October 1949 32.04% April 1924 -27.98%
April 1920 31.67% September 1931 -25.85%
February 1923 29.58% October 1922 -24.65%
April 1923 29.28% November 1918 -23.16%
October 1923 26.20% October 1987 -27.31%
The Best and Worst Years