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Similarly I was downvoted for pointing out that the developed markets index returns (30%) doubled US market returns (15%) over the last year. Simultaneously the
by therobots927 9mo ago
Similarly I was downvoted for pointing out that the developed markets index returns (30%) doubled US market returns (15%) over the last year. Simultaneously the value of the dollar has dropped 10%. I simply stated that we’re seeing capital flight from the US. Ray Dalio said the same thing this morning.
- maerF0x0 9mo agoAnd if you look at pricing as a proxy for capital flows, SMMD which is Russell 3000 minus S&P500 has had a heck of a run in 3 months. IMO People are retreating the mag7
- therobots927 9mo agoI hadn’t noticed that , that is interesting. Makes sense to me. That’s not good for the S&P considering that ten stocks make up 40% of the index. And since the wealth effect is really the only thing keeping the US out of a recession, if the MAG7 fail then we’re looking at serious economic problems.