US stock markets still believes in Bernanke Mojo, while most other markets are waking up.....!!
O Ashuji...
Most Asset Markets have completely changed in terms of performance since 2013. There has been massive divergence between asset markets since 2013. Most Global markets bottomed in early June 2012 and had uniform run till December 2012. Such change in behavior is a process and is usually associated with major corrections. Let the DATA talk.....
Major Asset Market Performance Since 2013
1) Most markets started with Risk On mode and created Bernanke's wealth effect in Jan 2013. EURO, METALS AND MOST MARKETS (except Brazil and Korea) had good run in Jan 2013.
2) However as we got into Feb 2013, Bernanke wealth effect started fading and few markets started lagging behind most notably Gold/Silver and Euro. Among stock markets Italy, India, Spain and Brazil fell hard.
3) Come March and Few more markets joined and left Bernanke's wealth creation bandwagon....they were Copper (-8%), Russia, China and few others...
4) Please refer to table for further self explanatory decay in various asset markets....
Conclusion
1) There has been gradual decay across asset markets since 2013, which is typically sign of major topping process or major correction.
2) Continued US out performance visa-vis most markets is sign of significant dollar rally about to come
3) US market is last man standing still having bernanke mojo.....while most other markets have woken up...
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