Priced in their own currencies, more than half of the countries in the world are trading above their 200-day averages. The US is not among them.
Why It Matters: The US has been in an uptrend versus the rest of the world for 235 weeks in a row, the longest continuous stretch of US leadership in the past 50 years. More broadly, the past decade has taught US investors that global diversification means lower returns and higher risk. But that trend is long in the tooth. If the dollar continues to fade, the opportunity for new leadership will become more apparent. Emerging Market central banks led the way into the tightening cycle and they could lead the way out of it. Remove currency factors and improving global rally participation can more readily be seen. And right now the US is not in the driver’s seat.
