Worldwide Wednesday

February 19, 2025 In mid-January, when we took our last chart-based tour around the globe, we noted that a brief reprieve for ex-US equities coincided with headwinds to US Mega Cap. Growth stocks and that international equities were acting similarly to the “average” stock in the US as proxied by the equal weight S&P 500

US Large Cap. outperformance vs. the MSCI World Index has plateaued. We think higher rates domestically would likely benefit ex-US equity performance as well as the average US stock pursuant to our big theme “Mega Cap. Growth vs. Everything Else”

Outside of Singapore and Argentina, very little is compelling in the ex-US equity space.

Post Election, US Large, Mid and Small Cap. shares are outperforming ex-Us counterparts.

US equities have re-asserted leadership, but China and EM are still in a bullish reversal pattern

The technical bullish reversal in Chinese shares remains intact. Now at an accumulation point.

The picture has finally changed for one area of ex-US equities.  In short, stimulative policies out of China have reinvigorated EM share prices