Thursday, March 16, 2006

The new leaders...




Currently, the market leadership in global equities is in Asia/Pacific Rim. Should the strength in these markets weaken, US equities also will be affected negatively.

Sunrise, sunset


Despite the recent high in the $SPX, the underperformance of US equities continues. Notice the breakdown as the $SPX is below its 10-year average against the Nikkei 225. Continued weakness in the Standard & Poors 500 could imply long-term, multi-year economic stagnation in the US.

 

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