Dow futures down 150 points; Chris Wood says best over for Wall Street

US stocks’ market value has reached its peak and further corrections in equities, Treasury bonds, and the dollar are likely, according to Jefferies’ global head of equity strategy.

Investors should consider adding Chinese, Indian and European assets in rebalancing their portfolios, Jefferies’ Christopher Wood said in a phone interview. US stocks’ market capitalization, as a percentage of that of the MSCI All Country World Index, reached its all-time high in late December, he noted, likening it to the Japanese market in the late 1980s.

“The US has made an all-time peak,” Wood said. “The dollar has begun a long-term weakening trend, and that’s going to reduce the US stock market capitalization as percentage of the world.”