• 4 days How To Invest In The Cybersecurity Boom
  • 6 days Investors Are Patient With Unprofitable Giants
  • 8 days Wells Fargo Back In The Scandal Spotlight Once Again
  • 10 days 5 Stocks To Keep A Close Eye On This Year
  • 11 days As Auto Giants Flail, Look To Chip Stocks For Gains
  • 12 days Central America Is Ready For The Bitcoin Hustle
  • 14 days China’s Video Game Restrictions Unlikely To Slow Down Booming Industry
  • 15 days Top Performing Stocks As Inflation Fears Grow
  • 16 days US Airline Stocks Take A Beating On New EU Restrictions
  • 17 days This IPO Could Open Sustainable Fashion Floodgates
  • 18 days Crypto Crime Nets Another $2B Fraudster
  • 20 days This Week’s Hottest Meme Stocks
  • 21 days Why World Markets Should Be Watching Germany Closely
  • 23 days Could ‘Cultured’ Meat Rival The Plant-Based Megatrend?
  • 25 days ‘Easy Money’: Crypto Is Still Attracting Newbie Investors
  • 27 days Foreign Syndicates May Have Stolen Up To $400B In COVID Benefits
  • 28 days Gold Jumps Above $1800 Ahead Of Jackson Hole Summit
  • 28 days International Banks Blacklist Afghanistan Following Taliban Takeover
  • 30 days China’s Tycoons Are Getting A Serious Reality Check
  • 31 days U.S. Cannabis Space Heats Up With Telling Tilray Acquisition
What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

Elliott Wave International

Elliott Wave International

Elliott Wave International

Elliott Wave International (EWI) is the world's largest market forecasting firm. EWI's 20-plus analysts provide around-the-clock forecasts of every major market in the world via…

Contact Author

  1. Home
  2. Markets
  3. Other

A Disturbing Global Shift Toward Financial Conservatism

Editor's note: The following article was adapted from the just-published State of the Global Markets Report--2016 Edition, one of our most anticipated annual reports for technically minded investors and analysts around the world. We are making the first 10,000 copies of this $99 report available 100% free. Click here to get your free copy now >>

Originally published Nov. 6, 2015.


An excerpt from our new State of the Global Markets Report -- 2016 Edition

Our monthly Elliott Wave Financial Forecast has been tracking a steady global shift to greater financial conservatism over the last several months.

As we noted in October, the long duration of the transition from a "risk on" to a "risk off" attitude suggests that the next decline will "go deeper and last longer than that of 2007-2009," which was the biggest bear market since the Great Depression.

The relationship between the MSCI Emerging Markets Index and the MSCI World Index on the following chart shows a trend away from risk that will gradually widen into a trend out of all equities.

The MSCI Emerging Markets Index comprises riskier stocks, and it made a countertrend rally high in September 2014.

The blue-chip World Index comprises shares in more developed countries, and it made its all-time high in May of this year.

The current rally shows how much the MSCI Emerging Markets Index is lagging. In fact, it retraced only about a third of its most recent decline while the MSCI World Index retraced two-thirds of the sell-off from its May high.

 


2016 State of the Global Markets

To continue reading insights like this, we recommend you get the 50-page State of the Global Markets Report--2016 Edition 100% free. See details below.

Your FREE Report:
State of the Global Markets Report -- 2016 Edition

This 50-page, chart-filled report may be the most valuable publication you read this year.

It will help you avoid the dangerous pitfalls and spot the biggest opportunities in the year ahead. State of the Global Markets Report is one of the most anticipated annual reports for investors like you.

We are making the first 10,000 copies available 100% free of charge. After that, it goes to $99 per download, where it will stay for the rest of the year.

Claim your free 50-page report now >>

This article was syndicated by Elliott Wave International and was originally published under the headline A Disturbing Global Shift Toward Financial Conservatism. EWI is the world's largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

 

Back to homepage

Leave a comment

Leave a comment