While western stock indexes struggle to rally in an overall bear market, their emerging counterparts are set to enjoy the real thing, Robin Griffiths, technical strategist at Cazenove Capital, told CNBC.
“Asia and China and emerging markets are where the new bull markets are being signalled. In the mature western markets, we’re having rallies in bear markets on the classic definitions,” Griffiths said.
Asian and emerging markets have finished a cyclical bear market and are giving all the signs of going into a new cyclical bull market, according to Griffiths.
“We do indeed have some bull markets on the planet, there in places like China and India, they’re definitely not in the western world,” he added.
It is possible for western indexes such as the FTSE-100 to turn the current bear market rally into a bull market, Griffiths said.
If the FTSE starts to make a pattern of rising highs and lows above the 200-day moving average, “most technicians around the world would accept it is now called a bull market,” Griffiths added.
- Watch the full interview with Robin Griffiths above.
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