New Sheriff in Town?
Igor Manukhov - May 17, 2024
China is starting to outperform. Let's see if it will stick
The rally that we've had since October 2022 was dominated by the US. However, there might be a new sheriff in town: China. While the North American market struggled in April,
Chinese stocks were gaining ground (the black line started to rise).
So much so, that suddenly, Chinese stocks are starting to outperform US and Canadian stocks (notice an uptrend is emerging in the red and green lines, respectively).
Since we've had false breakouts before, I would recommend being patient before moving funds into the Chinese market. But if this relative strength persists, emerging markets and Chinese stocks might regain their spot in the portfolio again.
