It was another ugly day for US markets, but at least from an equity perspective, the US really is the cleanest dirty shirt right now.
As such, going long US stocks while going short big caps around the world has held up really well.
We first saw the trade proposed several weeks ago by Waverly Advisors, and though it’s down a bit from its highs, it still looks very nice.
Here the trade is represented by long SPY/short EFA.
It rose 1.18% today, an indication of how significantly the US outperformed the rest of the world today.