We explained last week Why Global Stock Markets Will Outperform U.S. Stocks In 2018. After writing that article we continued researching global stock markets, and we found a truly amazing chart.
The MSWORLD index represents all global stock market indexes excluding the U.S. stock indexes.
The 20-year chart is really awesome.The index shows a huge head-and-shoulder formation spread over 20 years. Not that we put a lot of value in this type of formation, primarily because we tend to find head-and-shoulders on literally every chart. What is fascinating is the series of peaks since the year 2000, all between 1700 and 2000 points in the MSWORLD index.
Now, as 2018 kicks off, those peaks are broken to the upside. We tend to call this a breakout.
What is suggests is that global stock markets will be bullish in 2018, simple as that. We are even close to recall our market call from a couple of months ago in which we forecasted a Stock Market Crash In 2018 because even the U.S. seems to evolve in the bullish direction.