FYI: With the S&P 500 just barely hanging on to gains in 2015, a lot of investors would tell you that it hasn’t been a great year for stocks. On a comparative basis, though, the US is holding up extremely well especially versus emerging markets. The chart below shows the relative strength of the S&P 500 versus the MSCI Emerging Markets index (in dollar adjusted terms). When the line is rising, it indicates that the S&P 500 is outperforming the MSCI emerging markets index while a falling line indicates that emerging markets are outperforming. Looking at the chart, it has been quite a long time where there was any meaningful period of time where emerging markets outperformed. In fact, you have to go all the way back to 2010 to find a time where there was any extended period of time where emerging markets outperformed the S&P 500. As a result of this extended period of outperformance by the US, the relative strength of the S&P 500 is now at its highest level relative to emerging markets since August 2004!
Regards,
Ted
https://www.bespokepremium.com/think-big-blog/us-relative-strength-versus-emerging-markets-at-a-10-year-high/
