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  • Hello and welcome back to the Six Charts of Christmas.

  • Today let's take a look at how the stock market here in the US is doing compared to the rest of the world,

  • and you can see it's a quite remarkable story.

  • Ever since the great financial crisis, which of course started here in New York,

  • we have seen a huge outperformance of the rest of the world by the US.

  • Now, there are no secrets why that's been, the Federal Reserve has made life much easier for American companies,

  • the dollar has strengthened and the US economy in general has been stronger,

  • but you have to ask how much longer that will continue.

  • With a stronger dollar that makes the international earnings of S&P 500 companies a bit weaker

  • it had helped flatter the earnings of foreign companies.

  • Also it will tend to constrict the US economy at home,

  • with people expecting the Federal Reserve is gonna tighten this year while other big central banks won't.

  • That should mean that the US economy will perform generally worse.

  • Finally, of course, other countries have taken longer to emerge from the Great Recession that followed the crisis,

  • there has to be a good chance that they will at least start to correct that.

  • Markets have a momentum, it's quite possible that the US great outperformance can continue a bit longer,

  • but it's hard to see how it can continue.

Hello and welcome back to the Six Charts of Christmas.

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