Tuesday, 20 May 2014

A Comparison of Global Stocks Shows Unusual Divergences

Sensex and Nifty indices continue to touch new highs – but where is the euphoria among small investors? In spite of a massive mandate for the NDA, there seems to be a lot of worry about the state of the economy and NaMo’s ability to kick-start GDP growth.


If you still need convincing about where FII money is likely to flow in the near term, have a look at the chart below:


S&P 500_vs_EEM_EAFE_May1614


The chart appeared in a recent article by John Murphy, a well-known technical analyst. Read the article here. Pay particular attention to the last line in the article.




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