There is a reason we look at the stock market from a global perspective. It’s because we invest in a global market. Stocks in America weren’t going up the past couple of years because of what was happening in DC or New York. Stocks in the U.S. were going up because stocks all over the world were going up.
That changed earlier this year. While U.S. stocks keep making new highs through the Summer, global markets were not participating.
The question was simple: Were we going to get rotation back into Emerging Markets, Europe and other under performing areas around the world? Or was the U.S. just the last man standing and would catch down to the rest of the world. It’s clearly been the latter as stocks have come off significantly this Fall.
For clues about what we should expect in U.S. stocks, I think it’s important to continue to value the data coming in from global indexes. [Read more…]