If ever you wanted to see divergence then look at China versus the US

The rise to fresh records for all the three major US stock market indexes this year comes even after a fabulous Q4 for the US markets. That quarter was also defined by losses across all the Chinese markets and the divergence between the two has extended further so far in 2024. There is no doubt that Chinese investors are fleeing their own markets and it seems like they have been actively buying US stocks as well as well-documented purchases of Japanese stocks too. This has led to the PBOC trying to prop up their own stock markets, although you would be hard pressed to find any official confirmation of that. It looks pretty clear to me though, given the price action just today as a prime example. US tech and the magnificent Seven has been the prime recipient of all this flow and right now, given the numbers reported in Q4 that would hardly come as a surprise. The PBOC has also been trying to halt the weakness in the Yuan although looking at the USD/CNH right now, it seems clear they have yet to successfully shift the direction on that. So, the PBOC is running scared and Chinese investors know this and hence they are looking elsewhere and given the state of the Chinese economy right now, who can blame them. I did wanr readers about this dynamic for China a few months ago