Chart 1 shows the performance of major asset classes since January 2007 (prior to Global Financial Crisis). All assets are priced in U.S. Dollars and include the global stock market index, equal weighted commodity index, U.S. Dollar index, and U.S. 10-year interest rate note yield. Let us remember that the U.S. equity market holds the largest weighting in the MSCI World Index, so due to its strong outperformance, the overall global index is giving an appearance of a consolidation. But the truth is, European and Emerging Market stocks have been under strong selling pressure in recent months, holding a lot of similarities to the commodity sell-off. Read more