Can’t you see the benefits of diversification with a basket of the S&P500 and the German DAX?  OK, maybe you get a currency hedge.  Stunning though how the global equity risk premium is, well, so global.   We believe the massive expansion of the global monetary base since the beginning of the millennium is a major factor in the increased correlation of global markets.

Stay tuned as we will be posting similar charts during the week comparing the S&P500 with other major equity indices.

(click here if chart is not observable)