This is the big joke going around these days between us intermarket nerds. While the rest of the world corrects, the United States of America keeps ripping into historic territory. And not all of the global markets are correcting, some areas like Japan, Philippines, and Thailand are soaring as well. But everything else? Some of the European averages have been getting crushed, some much worse than others. Emerging markets trending lower all year long, again some worse than others. But the US? New highs every day baby!
Today’s chart of the day is one that I think tells this story well. One of our country’s favorite tech companies, Google, hit all time highs last week and is consolidating nicely up near these historic levels. Meanwhile, China’s equivalent, Baidu is currently attempting to close at the lowest levels since September of 2010. Quite the difference here my friends. This chart represents the pair since the beginning of the year:
And here is what a one-year chart of Google compared to Baidu looks like:
There has been a huge disconnect lately between the United States and the rest of the world. This is the first time in a while that we’ve seen something like this persist for this long. I think it’s something we need to recognize.
Tags: $BIDU $GOOG