This episode was previously recorded on January 9th, 2023 for our clients. Here I discuss how for the first time in about 12 years, Emerging Markets flipped "positive" against technology, and will likely outperform US domestic markets on a RELATIVE basis in the foreseeable future.

Relative strength measures the performance of one security in comparison to another. For example, how Microsoft is performing compared to the S&P 500, or how the U.S. Dollar is doing relative to the Euro. It doesn't promise positive gains. It just means if for example US markets are +10%; Emerging markets should be up slightly more. If Emerging markets are -5%; then we can anticipate US domestics to be down more than -5%. It's a relationship between two similar assets classes.