Thanks to exchange-traded funds, we can now invest some capital via an online brokerage account to access and profit from some juicy gains being made around the world. This year we have seen Peru (EPU) lead the way with a 63% surge since late February. Argentina (ARGT), New Zealand (ENZL), Thailand (THD) and Chile (ECH) have gained an impressive 35%, 32%, 19%, and 16% respectively since February of this year. March 2016 new uptrends have seen gains in Brazil (EWZ) +37%, Russia (RSX) +20% and Canada (EWC) +14%. Indonesia (EIDO) + 14% and Taiwan (EWT) +13% have surged since early June.
There is no overhead resistance in the S&P 500 due to the new all-time high recorded on 11 August along with the other two major U.S. Indices. We are now in unchartered territory and it’s troubling that these new highs are being traded on very thin volume and volatility is also extremely low. We would be very cautious with the U.S. markets in the near term. As VOLUME PRECEDES PRICE, the global markets that are attracting big inflows recently are Indonesia (also planning to lower it’s corporate tax rate from 25% down to 17%), Canada (EWC), Mexico (EWW), Malaysia (EWM), Italy, albeit in a long-term downtrend (EWI), South Korea (EWY). These are ones to watch for some near-term gains once and if their trends confirm.