Even though the Greek elections have come and gone, the problems in Europe are far from over. As a result of the ongoing turmoil, US markets continue to outperform Europe and the rest of the world. The chart below shows the relative strength of the S&P 500 versus the MSCI World (Ex US) Index. When the line is rising, it indicates US stocks are outperforming and vice versa when the line is falling. As we have noted in prior updates, US stocks have been a port of safety compared to the rest of the world. In fact, the S&P 500's relative strength is currently at its highest levels relative to the rest of the world since September 2004.
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