Chart Talk {09.07.17}

We've talked in the past about the under performance of international equities versus their US counterparts.  Our most recent discussion on this was here back in May.  International stocks have done better than their US counterparts this year but have significantly underperformed since this bull market began back in 2009.  That may be about to change if the chart above is any indication of the future.  The chart above tracks relative strength which means measures price performance versus another indicator.  In money flow analysis we usually measure a stock or index versus another indicator, usually a major market index.  In that parlance, and at least regarding emerging markets, we are starting to see this index outperform the S&P 500 on a relative basis.  Assuming world economic growth continues to expand then it is possible we are witnessing a longer term rotation away from US stocks and towards markets abroad.

Time will tell.

Back next week When we'll be posting Tuesday, Wednesday and Thursday.

Link:  Abnormal Returns: https: 08/30/2017, Wednesday Links

*Long ETFs related to the S&P 500 in both clients and personal accounts.  Currently short SPY and ETFs related to the S&P 500 in a personal account related to an options strategy not employed in client accounts.  Long ETFs related to international markets and emerging markets.  We reserve the right to change these investments without notice on this blog or via any other form of verbal, written or electronic communication.