According to an analysis by The Kobeissi Letter on December 31, approximately 94% of the markets covered by the MSCI Country World Index (ACWI) are now trading above their 200-day moving average, near a five-year high. Meanwhile, about 87% of the ACWI country markets are above their 50-day moving average, the highest level since July of this year.
The ACWI index covers 23 developed markets and 24 emerging markets globally, representing approximately 85% of investable stocks worldwide. The ACWI index is up 21.6% year-to-date, on track for its third consecutive year of gains. Meanwhile, the MSCI World Country Index (excluding the US) has outperformed the S&P 500 by 12 percentage points, the largest gap since 2009. The global stock market is experiencing an incredibly hot investment frenzy.
