MSCI Global Momentum Index Outperforms by 17 Percentage Points in Two Months, Creating Record Excess Returns

According to Guru Club, the MSCI Global Momentum Index has outperformed the MSCI All Countries World Index by 17 percentage points since late March, marking the strongest two-month excess returns on record since 1991. The rally is driven by artificial intelligence enthusiasm attracting capital to the market's top-performing stocks, despite concerns over Iran-related risks.

Investors are warning of potential instability as concentrated positioning in the same stocks increases vulnerability to sudden reversals if high inflation forces the Federal Reserve to tighten policy or corporate earnings weaken.