BRIC (Brazil, Russia, India, China) countries continue to surge higher in 2009, as they've far outpaced stock markets of so-called "developed' countries. Below we highlight their year to date performance compared to the S&P 500. As shown, Russia is up a whopping 72.1% this year, followed by India at 51.6%, China at 44.6%, and Brazil at 39.7%. The S&P 500 is up 0.22%.
This remarkable rally invites the question: How high is high? There is really no answer, except to keep on moving with the trend. The trend is up, which is all we can determine.
Together with Stocks, gold and crude also continue to rally, suggesting that the markets are anticipating inflation. Maybe, the current rally in stocks may continue since stocks are a hedge against inflation.