November 26, 2018

Chart of The Week: Time for one last party?

by Fathom Consulting.

The uncertainty which has been a feature of 2018, has spiked even higher in recent months. Equity markets have been volatile. Does this signal the end of the equity bull market?  Notably, the US has significantly outperformed other developed market equities this year, even throughout the volatile market corrections last month, pushing relative valuations to near-record levels. As we have set out to clients in our latest quarterly forecast,  a narrowing of the performance gap between the US and other developed market equities represents one of a number of developments that, were they to occur within the next few weeks or months, would raise our confidence that there is time for ‘one more party’ before the equity market bull run comes to an end. Indeed, last week US equities, as measured by the S&P 500, underperformed other developed market equities, as measured by the MSCI World excluding US.

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