The Deep Dive

Foreign equity market review

Good morning advisors,

Yesterday’s Monday Morning Playbook highlighted two key charts that I think are worth exploring further:

1. The dollar breaking down to its lowest level since mid-August

   

   US Dollar Index (daily) with MACD momentum indicator

2. Foreign stocks, as measured by the MSCI World ex-US ETF, hitting 3-month relative highs vs. the S&P 500

   

   MSCI World Ex-US ETF (VEU); relative to S&P 500 (bottom panel)

So, should international equities be back in our portfolios? Let’s dive in!