A Scary Chart Says A Global Bear Market Is Underway!

While the U.S. market recovered from last summer’s correction and went on to recent new highs, it’s looking increasingly like global markets outside of the U.S. rolled over into a bear market last April, and that their rally off the October low was only a bear market rally within an ongoing bear market.

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The FT World Index EX-USA plunged 22% last summer, exceeding the official 20% decline that defines a bear market.  And the rally off the October low only partially retraced that decline before rolling over to the downside again in what looks like the beginning of a typical 2nd leg down.

For over a year now, global markets outside of the U.S. have been correctly fearing that the eurozone debt crisis, austerity programs, slowing economies, and actual recessions in Europe, were a serious threat to global economies. 

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