This Chart Shows What An Incredible Year The American Market Has Had

On paper, it doesn’t look like the US stock market has had such a great year. They’re barely in the green, and have been very volatile.

But some perspective is in order.

Research and asset management firm Waverly Advisers has been advocating a simple trade since July: Long SPY/ Short EFA (The rest of the world)

As the chart shows, it’s been a fantastic run, as the US proves to be the “cleanest dirty short” or whatever metaphor you want.

Waverly chief investment officer Adam Grimes said in a note earlier this week:

“This spread continues to perform well. We believe domestic equities will outperform on either a broad rally or decline, and see the major risk to this trade as a protracted sideways trading range.”

S&P performance against MSCI EAFE

Photo: Waverly Advisors

Don’t Miss: We Just Had An Amazing Month For Stocks: Now Here’s What’s Going To Happen Next >

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.