A Year-To-Date Look At The World
Click to enlarge
Source: All Star Charts
The chart above, from JC, shows how the world has been doing since the start of the year.
I can only think of three possible future outcomes, from best to worst:
1. Rally! The rest of the world bottoms, reverses, then gets pulled higher by the US and Japan. China and India resume their torrid growth.
2. Meh! The US & Japan soften a little, the rest of the world improves a bit, we muddle through.
3. Look out Below! The rest of the world drags US & Japan down.
These divergences tend to not last very long . . .