From The Big Picture:

The last time the ratio of the S&P 500 to the MSCI World index staged a bullish breakout was in the summer of 2008 — just before global equity markets fell off a cliff.

On its face, that doesn’t seem to make sense. For one thing, it contradicts anecdotal and other evidence that the U.S. tends to lead the way as far as equity markets are concerned.

In addition, the fact that America has been ground zero in terms of the financial crisis would seem to indicate that our markets should bear the brunt when investors run scared.

That has not been the case, however. As paradoxical as it sounds, there are...

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