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Equities To Underperform

|Includes:SPDR S&P 500 Trust ETF (SPY)

I found a very good macroeconomic site named Eureka Report (Kohler's Graphs) which basically monitors global economic trends. I couldn't resist to show one of them here.

As I pointed before, equities have outperformed many other assets the last months and this can also be seen on Chart 1. There is a correlation between equity prices and the earnings per share revisions. The last couple of months we saw a decoupling between the two.

It is my prediction that global equities will therefore continue to underperform other assets in the coming months.

(click to enlarge)Click to enlarge
Chart 1: Equities Vs. EPS (Kohler's Graphs)
Click to enlarge
Stocks: SPY