While tariff concerns still exist on Wall Street, some subtle movements in global stocks are beginning to support the bull market. Tim Hayes, chief global investment strategist at Ned Davis Research, said global stock markets are beginning to show improvement, with lower concentrations in large quantities and wider participation overall. The iShares MSCI ACWI ETF (ACWI) shows that the 10 largest holdings, including Apple, Nvidia and Microsoft, have become the percentage weight of exchange-traded funds, while more names are starting to trend, which is a potential sign of health breadth . “More and more markets are starting to participate in the global uptrend,” Hayes wrote, adding that momentum indicators indicate the trend is rising. “Since October, the percentage of markets that are now above the 200-day moving average has reached its highest level, while the percentage of markets above its 50-day moving average is now the highest level since September,” Hayes added. On the 4% increase in ACWI was 4% better than the S&P 500. iShares MSCI ACWI (ACWX) (ACWX) performed higher, up nearly 8%. ACWI YTD Mountain ACWI will appear when investors are looking for the next catalyst to bring the S&P 500 to a fresh record. Even with ongoing concerns about President Donald Trump’s trade policy, the broader index was cut primarily around the beginning of the year. The index has been hovering within its record range. “Tariff and trade uncertainty have not disappeared. A variety of situations have made the long-term outlook for inflation and bonds far from obvious. The level of concentration remains much higher than historically.” “But, It is encouraging that the large-scale dependence of the market is combined with improvements in global breadth. “Hays continues. “As long as you continue to do this, you will support a bullish positioning.”
Tariff threats persist, but global stocks are underway | Real Time Headlines
RELATED ARTICLES