HISTORICAL CORRELATIONS GIVE US A CLUE TO WHAT MAY BE AHEAD!
A FALLING GLOBAL MARKET CAP TREND CHANNEL
The old adage that the “Trend is Your Friend” has proven to be the one that separates the winners from the losers. The key however is whether you recognize the right trend!
We are being possibly lulled into a false perception and belief of how good things appear if we solely look at the US equity rally. Yes it is temporarily rising but the 600# Gorilla is the Global Bond market and major problems are still lurking.
The trend to focus on GLOBAL MARKET CAP:
While US bank stockholders are ebullient at The Trump presidency-to-be, the rest of the world has lost a combined $1.5 trillion in market value across its bonds and stocks, Global equity and debt markets lost over $1 trillion in value last week (the week of the US FOMC meeting) – the biggest weekly loss since early May (weak China data and huge surge in dollar).
This post was published at GoldSeek on 23 December 2016.
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