Venture to broad markets: “how low can you go?”

The Wilshire 5000 is generally seen as the best measure of the entire U.S. stock market. The below chart plots the broad Wilshire 5000 (brown) and the S&P 500 (blue), today near all time highs, as against the Canadian Venture Exchange (red) since 2005. While historically correlated, the disconnect the past 3 years since Q’Ever was promised has been extreme.
Wiltshire 5000 and S&P Oct 8 2014Today at 838, the Venture has confirmed its secular bear promise, mean reverting below the most recent June 2013 low at 859 and now within striking distance of the 678 bear market bottom of 2009.

For the broad markets to recouple their usual positive correlation with the Venture and close this gap, the implied downside is about -57% from present highs.


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