From the desk of Steve Strazza @Sstrazza
For the week ended Friday, May 8, 2020:
Every weekend we publish performance tables for a variety of different asset classes and categories along with commentary on each.
Many of the relative trends in stocks that have been in place for a long time have come into question recently as they’re showing signs of maturing due in part to the change in leadership we wrote about this week.
In this post, we’ll highlight two structural intermarket themes that have remained robust throughout this tumultuous time for equity markets.
The first relative trend that hasn’t slowed down at all is the relentless outperformance of the US over the rest of the world. Our first table shows the Wilshire 5000 (DWC) dominating every Global Index over just about every timeframe, from this week to the trailing year.
Click table to enlarge view.
The second theme is the continuance of Mega-Cap Growth and Tech as the drivers of this US relative strength, best represented by the Nasdaq’s (QQQ) stellar returns in the table below.
Let’s visualize these powerful relative trends with 20-year ratio charts of US vs Eurozone Stocks and the Nasdaq 100 vs the total US Stock Market.