Chart Of The Day: US equities move towards new highs, still outperforming the globe
How strong is the global equity bull market? Today’s chart focuses on major global equity regions, all priced in US dollars and not including dividend returns. Interestingly, while the US equities sit near all time record highs ARCA:SPY, Emerging Market equities ARCA:EEM are on the verge of breaking its most important support zone in years. Finally, Eurozone equities NYSE:FEZ recently bounced of its support line as Greece was yet again bailed out (for the third time), but still remain of their highs set last year in June.
The most important observation an investor can make is that foreign equities (EU and EM) have not made any progress since October 2009, while majority of the gains in the All Country World Index NASDAQ:ACWI has come from the US equities outperformance. So to answer the question at the beginning of this post, the global equity market isn’t that strong or broad. Majority of the world continues to have anaemic growth (or contraction) and basically, global bull market is mainly driven by only one major region: United States.