Must See Graph: Asia vs West Trend

On Monday, European stock markets plummeted. Italy, the new poster child of the euro crisis, saw its benchmark stock index fall to its lowest level in two years.
 
It’s the latest price confirmation of a giant trend you’ll rarely hear about: “Asia up, the West not so much.”
 
#-ad_banner-#The long-term case for owning Asian assets versus U.S. and Western European assets is simple… Over the past 40 years, the Western world has cooked up a stew of unfunded welfare programs, huge government debts, and populations who’ve adopted a “something for nothing” way of life. Asia, on the other hand, isn’t burdened with the “welfare state of mind.” Most Asians are poor… but they’re working and saving like crazy to catch up with the rich Westerners they see on TV and YouTube.
 
This situation makes it attractive to “buy Asia, sell Europe.” And you can track how that trade is doing with a ratio chart plotting the performance of the Singapore fund versus the performance of the Italy fund. A rising trendline shows Asian stocks outperforming European stocks. As you can see, the latest round of euro crisis just sent this ratio skyrocketing to a new high. It will continue to go higher.