GFD Blog

French Investors and the Revolution of 1848

The Revolution of 1848 in Paris produced the most dramatic drop in the price of stocks and bonds in French history.  The stock market dropped in value over 70% when prices collapsed like a waterfall.  It took years of political stability for the market to recover from this collapse. 

GFD has daily data on the behavior of Banque de France stock, France’s 5% Consolidated bonds and other shares which enable us to analyze how the market responded to the Revolution.  What we discovered was that the events of the Revolution of 1848 directly impacted the market, ...

Investors and the French Revolution

Most people know the basic story of the French Revolution.  France’s aid to the United States indebted the nation leading to new taxes that fed a revolt against the king and the aristocracy. The Estates General was convened in May 1789, and on July 14, 1789, the Bastille was stormed marking the beginning of the French Revolution. The Declaration of the Rights of Man was passed and feudalism was abolished in August 1789. France became a republic in September 1792 and in January 1793, King Louis XVI was executed. A dictatorship gained power in 1793 under Robespierre and the Committ ...

Events in Time Anniversaries: April 2019

25 years ago: April 1994

S&P 500: 450.91 (vs. 2867.24 in 04/2019)

10-year U.S. Government Bond Yield: 7.06% (vs. 2.52% in 04/2019)

Gold: $376.45 (vs. $1293.50 in 04/2019)

Oil: $16.915 (vs. $61.59 in 04/2019)

GBP/USD: 1.4835 (vs. 1.309 in 03/2019)

US GDP: 7,013 billion (vs. 20,891 billion in 12/2018)

US Population: 260 million (vs. 328 million in 2019)

04/04/1994: Stock and bond prices tumble again. The 14% decline in bond prices from late January to early April is the biggest downturn since 1987. Marc Andr ...

Romanian Stocks Before World War II

Global Financial Data has the most extensive database on historical stocks available anywhere in the world.  GFD has collected data on stocks that listed on the London Stock Exchange from the 1600s until 2018.  London was the financial center of the world until World War I, and many companies in emerging markets listed their shares on the London Stock Exchange before a stock exchange even existed in that country. Using data from London and the United States, GFD has calculated stock market indices for emerging markets during the 1800s and 1900s before stocks listed on local exchan ...

750 Years of Interest Rates

Global Financial Data has collected centuries of data on interest rates. We wanted to highlight two data sets from the GFD Indices that cover government bond yields from 1285 to 2019 and that cover central bank deposit rates from 1522 until 2019. With these two charts, you can see how unusual the current decline in interest rates is, pushing yields down to levels that hadn’t been reached during the past seven centuries.

Government Bonds

Figure 1 provides data on the yields on government bonds from 1285 until 2019. During the past 700 years, the financial center of the worl ...

Will America’s Outperformance Continue?

Global Financial Data has generated indices on the United States and the World Index excluding the United States since 1792. This enables us to compare the performance of stocks in the United States with the rest of the world over the past 225 years. Generally speaking, US stocks underperformed the rest of the world in the first half of the 1800s, but strongly outperformed the rest of the world since the Civil War. After a decline in the relative performance between 1967 and 1988, American stocks have generally outperformed the rest of the world over the past 30 years. Will this trend conti ...

Global Financial Data’s Emerging Market Indices

Global financial Data has calculated an index for Emerging Markets that far precedes any indices that are currently available. MSCI’s emerging market index begins in 1987. GFD’s Emerging Market Index begins in 1602. Though few people may realize it, emerging markets are one of the primary reasons why stock markets came into existence 400 years ago.

The British, French and Dutch created monopolies that enabled investors to raise capital for companies that explored Asia. During the 1800s, the British raised capital in London to fund companies not only in British colonies, but in Sout ...