For seven years, S&P 500 has been crushing non-U.s. stocks. Technical Analyst Jonathan Krinsky predicts that now, international equities will soon have a big comeback. “The MSC All-World Ex-U.S. index has lagged the S&P in each year since 2010, for the longest streak of under performance since the former index was created in 1988. Even more dramatically, the S&P has nearly doubled the rest of the world’s performance since 2010.” said CNBC.
MKM Parner’s chief market technician Krinsky wrote, “we think it’s time to look for a reversion to the mean in favor of global equities.”Looking at charts, he observes that the global index “is approaching a key breakout out of an 18 month base”. Harvest Volatility Management’s portfolio manager, Dennis Davitt said, “The U.S. has been driving growth globally, and will continue to do so,” “I think you’re going to continue to see that spread stay where it is, and it may even increase.”
A great indicator for a global stock rebound would be President-elect Donald Trump going into more detail on his policies and making his plans for trade and economic stimulus more clear. On his recent news conference, he left investors hollow with his vague statements for the future of the American economy.