By Doug Short (Guest Post)
Standard & Poor’s downgrade of Italy’s long- and short-term sovereign credit ratings came as no surprise to anyone who follows the Italian stock market.Italy’s benchmark equity index, the FTSE MIB (Milano Italia Borsa) dropped 3.17% yesterday. Today recovered some of that loss with a gain of 1.91% in the wake of the downgrade. However, a longer-term look at the MIB illustrates its exceptionally poor performance since its peak in May 2007. At its March 2009 low, the index had declined 71.6% from its peak. At last close, the index is still down 67.6% from its…
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