US v. the World

The SPX is right at its October 2005 lows v. the MSCI world index. This is both troubling and hopeful. If global asset managers see the SPX as a value market and reallocate assets into SPX, then it should bode well for SPX in 2006. However if the SPX:MSCI world ratio breaks down, it's another indication of the multi-year, secular movement away from SPX stocks.