October 2016 – ADIFO Global Market Review
The S&P 500 looks to be running out of steam, dropping 1.9% in October after back-to-back months of basically going nowhere. While still up 4% on the year, over the past 12 months the gains have slipped to a paltry 2 1/4%. With the Fed generally expected to hike interest rates in December, leadership may be rotating away from the US and back towards international equities. The rally continued modestly in the UK FTSE100 and Emerging Markets indices, with Japanese equities joining the party as the Yen weakened, up 5.9% in local currency. The Nikkei chart is looking very healthy and is the only market with a strong +3 reading in our technical analysis score. EM continues to lead all others for the year with a YTD performance of 14.0%.