The BRICKS Are Breaking Out

JC Parets
December 17, 2019

When we talk about Equities, we need to think about them holistically as an asset class as opposed to simply focusing on the individual stock or sector or index we're looking at.

That brings us to today's chart, which is an Equally-Weighted BRICKS chart we've created to track the performance of Brazil, Russia, India, China, South Korea, and South Africa as a group.

Click on chart to enlarge view.

While nobody is going out and purchasing the index in this form, we can use it as information. If the BRICKs are breaking out, which they currently are to nearly all-time highs, then we're likely in an environment where we want to be buying Emerging Market stocks, and stocks in general, on an absolute basis.

The weight of the evidence continues to suggest the trend in stocks is higher from a structural perspective and there are many individual stock setups offering asymmetric reward/risk opportunities at current levels.

Until that changes, we'll stick with our current playbook.

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Thanks for reading and let us know if you have any questions!

Allstarcharts Team

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