U.S. Isolation …

Economic disruption along with tariffs are going to make it tough to invest anywhere over the next four years. But one thing that I have been watching out of the corner of my eye is how a few ETF’s are acting since the election. Europe and China are showing relatively better patterns than the S&P.

Here is a chart using weekly data that shows the relationship between the FEZ European ETF and SPX, the U.S. ETF. You will see the double bottom made on September 26, 2022 and November 25, 2024. The FEZ is showing strong relative strength, may be too strong to buy right here, but the direction is clear. the China MCHI ETF vs SPX is much the same, just not as strong.

It would probably be way too soon to pronounce the collapse of Trumpism, but the picture will be clear as to what to do after we see the full-on tax cut hype play, whenever he can get that through Congress.