Did you see that the weakest stocks in the world are making new 52-week highs?

Here it is Frontier Markets ETF $FM – its exposure is from countries like Kuwait, Vietnam, Nigeria, Kenia.

For me it’s a clearly sign of risk appetite for stocks in general. pic.twitter.com/kQqJ0zMYlc

— R. Alfonso Depablos (@AlfCharts) April 5, 2021

Today’s Chart of the Day was shared by Alfonso Depablos (@AlfCharts) It’s a daily candlestick chart of the Frontier Markets ETF, $FM, over the past eight months. Global equity markets can be classified into three groups;

1.) Developed Markets (US, Japan, Germany, France, etc.)
2.) Emerging Markets (China, India, Russia, Brazil, etc.)
3.) Frontier Markets (Kuwait, Vietnam, Nigeria, Kenya, etc.)

Frontier Markets are generally perceived as the riskiest and most aggressive of the three groups, simply because their economies are smaller and less developed. Alfonso points out that Frontier Markets are breaking out to new 52-week highs after a three-month pause. This is a healthy sign for Stocks as an entire asset class because it shows risk appetite and broad participation from equity markets around the globe.