When we talk about the bull market in stocks, I think it's important that we're not just referring to the United States Stock Market. There is an entire world full of stocks and market participants that move up and down together. Today I want to show you an example of the importance of constantly monitoring what is taking place around the globe.
This is the London FTSE100 Index. It is hands down one of the most important stock market indexes on the planet, top 5? top 3?
If the London FTSE100 is breaking out of an 18-year base, I find it very difficult to be bearish of stock as an asset class.
Here is a shorter-term look. If prices are able to break out above the highs from earlier in 2017 I think this index can go much higher towards 8100.
I just don't see a move like that taking place while US Stocks are crashing. I would much rather err on US Stocks following British Stocks to new highs.
The weight of the evidence continues to suggest that the path of least resistance is still much higher for stocks as an asset class.
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