As long as the US dollar continues to correct (attended by the declining Gold/Silver and rising Silver/Gold ratios) it looks like Global markets are catching a good bid along with precious metals and now, commodities. Let’s use some related ETFs for a view of the current situation.
UUP is in short-term breakdown mode.
The World (ex-US) is in break up mode. Funny how that works, eh? Maybe funny, but also logical.
EM is not surprisingly taking a bid on the weak dollar. I have a personal eye on this, Asia and also the EM income fund TEI, possibly for another shot. EEM, like ACWX above, is in a bullish looking short-term pattern but unlike ACWX, has not yet taken out the SMA 50.
Asia (ex-Japan) is very similar. Last I checked a couple years ago these two ETFs shared many of the same components. Probably still the case.
Yen hedged Japan is and has been gently bullish.
Euro hedged Europe is and has been bulling.
Let’s clip it there. I just want to give a snapshot of what some nominal global markets are doing as the USD declines. When the next bear phase comes to markets I’d expect a strong bear market rally in USD at least, if a deflationary liquidity crisis ensues. But let’s also remember that some decades long rules have changed and the usual liquidity default to USD could be one of them. I am not jumping on the decades old “death of the dollar” tout, but am staying open minded.
Other notes: Canada, Australia and India are among those lagging the global picture. If I have global interest – and I am gaining that insofar as the bear market rally persists – I’d be looking to Asia/EM first and foremost.
