From Peaks to Troughs

Abstract

This chapter provides a thorough examination of equity market indexes in different countries, documenting their trajectory from highest points to lowest points over a long period. The study uses a clustering methodology to analyze the patterns, correlations, and divergences in the performance of different indices, offering a nuanced comprehension of global equities market dynamics. The study utilizes sophisticated statistical and econometric methods to group country indices. This methodology enables a perceptive analysis and differentiation of how distinct equity markets react to both global and local stimuli, unveiling interdependence and distinctive attributes within these markets. A considerable section of the analysis focuses on comprehending the influence of key worldwide occurrences, such as financial crises, political upheavals, and unexpected situations like the COVID-19 pandemic, on these indexes. This work enhances the subject of financial economics by conducting a thorough and organized examination of equity market indexes. It highlights the intricate and interdependent nature of global financial markets in a time of growing economic integration.