As regular readers know, we use relative strength point-and-figure methodology as an input in our process. One of the main benefits of the system is the ability to see beyond short-term fluctuations in the price of a stock. We can apply this process to country indices as well, allowing us to focus on areas with more promising overall trends.
(note that all charts are relative to the MSCI All Country World Index and are converted to USD)
First, we have those countries whose stocks are in a trading range formation, showing no sustained out- or under-performance versus the benchmark:
Next, we have those countries where constituents have performed positively relative to the MSCI ACWI:
And, finally, we have the countries (a clear majority) that have struggled to keep up with gains in the overall index and, in some cases, seem to be accelerating to the downside: