Anyone ridden Disney’s “It’s a small world after all?” Can you sing the song?
Sir John Templeton used to say the key to investment success is diversification, finding assets that move in different directions, at the same time. Below is a snap shot highlighting some of the major world markets. Notice anything? It is a small world after all, in that most of the world markets are facing overhead resistance at the same time.
Click on chart to enlarge.
Resistance is Resistance until broken!
If resistance is to break, Emerging Markets ETF (EEM) would be the first to succeed, since it is pressing “long-term” resistance right now! With some of the smaller Emerging markets already breaking out and doing very well…aka, Chile, Turkey, Thailand and Colombia, keep a close eye on EEM, as odds favor it as a proxy for what the worlds next big move will be.
As Disney said….It is, a small world after all!