US stock market underperforming in global boom

[Guest guest]

Dear friends, has advised me that the development in the US stock market needs to be seen in the context of global stock market developments. Indeed, a global boom in stock markets has been taking place for some time. It seems all markets are just moving up. This is true for the US market as well as others. I share with you his insight:"New technology (IT) has brought the world on a stage of recreation of new infrastructure and markets, which is generating wealth for the knowledge based industry across the world. It is expected to continue to generate wealth for some years. The additional wealth is creating new opportunities for the leisure industry sector, luxury industry, computer industry, real estate industry, financial industry, automobile industry and research & development industry. These new opportunities are in fact the scope of the new economic order across the world which is sustaining the stock markets

despite the unfavorable conditions which were previously considered harmful for the stock markets boom."- , June 16, 2007However, this does not necessarily mean all stock markets are doing equally well all the time. I have found indicies that allow us to compare the performance of share prices in the USA and in the rest of the world. Both indicies are composites for the stock markets in the USA (DOW JONES COMPOSITE INDEX) and in the rest of the world (FTSE WORLD EX USA (WIXUSASG.L)Source: http://finance.As the attached graph shows of these two indexes, there has been a mighty boom in the US Stock market but an even greater one in the rest of the world. The second graph shows the same thing, but here the share

price index of the USA is cast in terms of the world index. It shows more clearly that the US stock market has actually been lagging the global boom since June 2005, when it was on par with stock markets elsewhere. The US stock market then began to do relatively poorly and reached a relative nadir in April 2006. It then began a partial recovery until June 2006, when it again began to show lackluster performance, at least relatively speaking. In 2007, the US stock market has continued to perform worse than the rest of the world, especially in the Spring of 2007, when a prediction was made of "a setback in financial markets". In late April 2007 the US performance began to catch up to the rest of the world, but the recovery has been short lived. In recent days, the US share prices have eroded again viz-a-viz the rest of the world.In relation to this please see below the message on SAMVA on May 8, 2007 by

where he predicts that by September 2007 things will again improve for the USA. At that time, the relative fortunes of the US stock market could be expected to improve again.Finally, let me note that the SAMVA USA chart was discovered on December 30, 2006 and hence predictive work based on it is in its infancy. But so far, the results have been overwhelmingly supportive of this chart, primarily based on the predictions of . The poor relative performance of the US stock market in 2005 and 2006 is also seen in this chart, when the Ve/Ra period was running and the nodes were afflicting in the chart. A gif file showing the SAMVA USA chart is also attached.Best wishes,Thor