Everyday, Everyday I Have the Blues
By John Stoltzfus,
Chief Investment Strategist
Trend Analysis
Market Strategy Radar Screen Weekly - November 23, 2015
In this article:
- Market Analysis
- Commodities
- S&P 500
Markets March to Different Drummers
Markets rallied in near-unison even as regional economies are on different trajectories
Markets rallied broadly and in near unison last week—even as regional economies marched to the beat of different drummers. The US remains on the verge of higher interest rates at the same time that European policy makers moved toward extending QE efforts, Japan remains in QE mode, and China and others focused on targeted stimulus efforts to generate growth.
Markets also rallied in parallel on improving fundamentals in developed international markets as well as a lessening of concern about possible negative effects on the current US expansion and sluggish foreign economies when and if the Federal Reserve begins tweaking the Fed Funds rate higher in December.
Markets around the world rallied to some extent as well, perhaps, in a show of solidarity in the aftermath of the terrorist attacks in France from over a week ago and a terrorist attack in Mali just last Friday.
On the week the S&P 500, The S&P 400 (mid-caps), the Russell 2000 (small–caps) and the NASDAQ (around 42% weighted in technology stocks) advanced 3.3%, 2.9%, 2.5% and 3.6%, respectively.
Outside the US and Canada, international stocks respectively rallied 2.5% in developed markets (MSCI EAFE) and 2.7% in the emerging markets (MSCI Emerging markets). Frontier markets (MSCI Frontier) in contrast slipped 0.6% on the week.
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