During the initial escalation in Ukraine in February, US stocks held up well while Europe and other areas fell sharply. Since the last Fed meeting in mid-March, however, the US has performed horribly while many areas around the globe have held up better.
Below is a chart showing the percentage of world stock market capitalization that the US stock market makes up (courtesy of Bloomberg). As shown, from the beginning of the fourth quarter (2013) through mid-March, the US made big gains in its share of world stock market cap. That trend has been flipped on its head since peaking, however, and it's now down to 35.3% from a high near 37% just a few weeks ago. As you can see in the chart, the US' share is right at the bottom of its one-year uptrend channel, so it looks like we're at a key inflection point.
The conflict in Ukraine seems to be heating up again, and outside of the Nasdaq, US indices are holding up better than European indices today. Let's see if the US can start holding up better here relatively speaking and bounce off the bottom of its uptrend channel.
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