The S&P 500 continues to churn sideways. CNBC is debating whether software has bottomed. Your buddy at work just averaged down on Bitcoin for the thirtieth time this year.

Meanwhile, international stocks are quietly having the best start to a year we've seen in over a decade. And almost nobody is paying attention.

Yesterday during our Market Blueprint webinar, we spent a good amount of time on this because I think it's that important. This is not a one week blip. This is a secular rotation that could last years.

The Chart That Nobody Is Watching

Pull up EEM/SPY.. a ratio we use to compare the relative strength of emerging markets against the S&P 500.

This ratio just reclaimed its 200-week moving average for the first time since 2018. Read that again. 2018.

For the last decade, the U.S. was the only game in town.

International diversification was a a one-way ticket to getting fired back at Merrill.

"Just buy FAANG" was the winning trade. And they weren't wrong.

But times are changing. That trade is over.

The last time this ratio broke out -- 2002 -- it lasted a full decade. Emerging markets absolutely smoked U.S. stocks from 2002 to 2011. Not by a little. By a lot.

And when these secular trends flip, they don't reverse in a few weeks or even a few months. They persist over quarters, years, decades.. That's what secular trends do.

So when I see this ratio reclaiming levels that haven't been seen in this decade, I'm not dismissing it. I'm positioning for a new secular bull market in global stocks.

And I'm not alone.

13F filings just dropped this week. If you're not familiar, these are the quarterly disclosures that every institutional manager running over $100 million is required to file with the SEC.

It's the closest thing we get to seeing what the biggest players on Wall Street are actually doing with their capital.

The headline? Stanley Druckenmiller -- one of the greatest macro traders to ever do it -- has been aggressively cutting mega cap tech and adding international exposure.

When Druckenmiller moves, you pay attention. The smartest money in the game is confirming exactly what price is already telling us.

Brazil Is More Than Just Caipirinha's And Beautiful Beaches

Now let's talk about Brazil specifically.

And I mean more than just good steaks and Carnaval.

EWZ is surging into multi-year highs. The BOVESPA, Brazil's version of the S&P 500, is ripping into all-time highs. And it makes perfect sense when you understand what's happening underneath.

Brazil is a commodity-heavy economy. Energy, agriculture, mining — that's what drives their market. And if you've been following along with us at all over the last few weeks, you know that commodities are in a secular breakout right now.

Energy at all-time highs. Materials at multi-year highs. Gold hovering around all-time highs. Copper at all-time highs.

When commodities run, Brazil runs. When the dollar weakens, emerging markets run. Both of those are happening simultaneously right now.

Druckenmiller sees it. He quietly purchased enough shares and call options to put EWZ into his top 10 largest holdings.

And this isn't just Brazil. Developed international markets are at all-time highs. Emerging markets are breaking out of a 20-year base. Latin America is on fire. The capital flows are accelerating and we can see it real time.

What This Means For You

If your portfolio is 100% U.S. stocks, you may be missing out on the beginning of something really great. You're making a massive concentrated bet that the last decade's trend continues forever. Price is challenging that view right now.

I don't predict. I don't guess. I follow price. And price is telling me to own international exposure right now.

We're positioned for it inside of TTI. We've been positioned for awhile, actually.

The question is.. are you?

Profits Over Prophets,

Hamilton