One of the major themes that kicked off 2015 was the shift from domestic equities to international. Many try to explain the shift as being caused by the large influence that foreign central bank had via easing coupled with the rise in the U.S. dollar. But we don’t know for sure – all we know is that it happened. By looking at relative performance charts we can see that International markets, as measured by the iShares MSCI EAFE Index Fund (EFA) began outperforming domestic stocks (i.e. the S&P 500).
However, that seems to be shifting once again as domestic markets have begun outpacing their international brethren. In the chart below, we can see the ratio between EFA and SPY (the SPDR S&P 500 ETF).
Keep Reading: Are Traders Leaving International Markets in Favor of the U.S.? (See It Market)
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