Bermuda Stock Market Benchmarks Compare Well

Tax-news.com

22 November 1999

The Bermuda stock market continues to show up well based on its performance against three key investment criteria - value, performance and correlation.

The Bermuda market's Price to Earnings ratio (stock price v earnings per share) looks good when compared with leading US and European markets where stocks are regularly traded at up to 30 times earnings per share; Bermuda trades at an average of around 10 times.

The long-term performance of the Bermuda Market has also been outstanding. Based on data up to 1998, the average annual return on stocks was 14.9 per cent, compared with US stocks at 12.1 per cent. Of the world's major exchanges, only the Netherlands stock exchange (17.9 per cent) performed better than Bermuda.

Against the third key indicator, Bermuda has consistently shown that it is one of the least susceptible markets to US market fluctuations, with only Japan being less correlated than Bermuda.

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