My friend and noted technician J.C. Parets is out with a post showing a chart of 10 equal-weighted global stock indices breaking out to all-time highs:
This is an interesting way to look at the world, as opposed to heavily weighting the NYSE, Nasdaq, and Nikkei due to their heftier market capitalizations. Notice how this equal-weighted index was more than cut in half during the 2007-2009 Global Financial Crisis.
We are seeing a truly remarkable global rally to begin 2017 with the Nasdaq-100 eclipsing the +10% mark this morning, Brazil and Canada making fresh highs. Even Germany and Japan are on the verge of breaking out to fresh 52-week highs.
While there certainly appears to be a lot to worry about, price action is telling us that stocks are climbing this wall of worry just fine.
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