Important Information for Visitors

Privacy Policy    Disclaimer   Contact Us


© Copyright 2016 Topdown Charts Limited

Chart: S&P500 vs MSCI Emerging Markets

September 18, 2018

Here's an interesting standout chart from one of my chartpacks.  It shows the relative performance of the S&P500 against the MSCI Emerging Markets index.  Basically US equities are on a parabolic tear in relative terms as EM equities have come under fire from multiple headwinds, and US equities have benefited from a capitulation on the relative value trade as solid earnings (and tax cuts) offset concerns about high valuations.  With the big reset in relative valuations, and clear downturn in sentiment and positioning (based on my tactical indicators, and anecdotal evidence on fund allocations), there's a decent chance we see a short term reversal, but the tailwinds for America and headwinds to EM are likely to persist at least through year end and likely into 2019.  There will be a time to take the other side of this trade, but a few elements still need to fall into place to make it a higher conviction contrarian trade idea.


This chart appeared in the latest Global Cross Asset Market Monitor




Looking for deeper insights?  Try taking a free trial of our institutional research service 

Please reload

Follow us for updates:
  • Twitter Social Icon
  • LinkedIn Social Icon
Search By Tags
Please reload

Important Notice

We offer exclusive insights for institutional clients with our suite of multi-asset investment research reports, personalized service, & global perspective.

Take a trial today...

Become a Client

Subscribe to the Top 5 Charts of the Week so you can get:

--Exclusive Charts

--Actionable Insights

--A Flow of New Ideas