Market review 24.11.23

Global leadership with a focus on Japan

Hello everyone,

In last week’s post, we looked at leadership among sectors and asset classes. Financials, crypto, and tech are the leaders. Meanwhile, many commodity areas are the laggards.

In today’s post, I want to look more at the leadership of countries and regions and then highlight Japan.

Global Leadership

The US has been in a long-term uptrend relative to the rest of the world. That relative strength accelerated in recent months (coinciding with a strong US Dollar Index and an uptick in rates):

Below is the global leadership board:

Many parts of Europe and Latin America have been a drag on the VEU ETF. Countries at/near 52-week lows include France, Finland, Austria, Netherlands, Mexico, and Brazil.

Below are weekly charts of France and Mexico showing significant breakdowns.

It’s not all bad outside the US. We’re seeing strength in countries such as Japan, Canada, Israel, Argentina, Peru, Singapore, and Taiwan.