Back in March I posted the chart below here Weekly Recap 3-23-2012 to show world market performance from major stock markets around the world. Keep in mind, the chart below was year to date up to March 23, 2012.
The returns at that time were beyond exceeding expectations, the returns were outstanding for just three months into the year. Fast forward to the same chart today of the same world markets and notice a much different picture.
Since March, returns have vanished as the Brazil (Bovespa) Index is down -24% from the high. The Japan (NIKK) is now down approximately -20% from its high. The other country indexes have also fallen back from their highs ranging from -6% to -14%.
Bottom Line: The charts above illustrate that the current environment is not conducive to a buy and hold strategy. I believe the world markets have put in a top in March, have sold off, and will remain under pressure throughout the year. There will be oversold bounces higher, but I do not see new market highs achieved this year. Thank you for reading.
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