MSCI World Index Says we are going down??!

Looks like we are going back to our March lows. Economic data is getting worse and worse. If the dow heads below 7000 who has the best shorts out there??

The chart above shows the hierarchy of the countries which make up the MSCI index. 

MSCI World Index Extends Third Weekly Drop; Canada Stocks Gain

By Adria Cimino

July 3 (Bloomberg) -- Stocks fell in Europe and Asia, extending the MSCI World Index’s longest weekly losing streak since March, as reports on retail sales and the service industry added to concern the first global recession since World War II will persist. U.S. markets were closed for a holiday.

Metro AG, Germany’s biggest retailer, slipped 2.5 percent as European retail sales dropped more than economists estimated. Seven & I Holdings Co., Japan’s largest retailer, sank 5 percent after saying profits sank 28 percent. Teck Resources Ltd. surged 9.1 percent in Toronto, leading Canadian stocks higher, after the company sold a stake to China’s sovereign wealth fund.

The MSCI World lost 0.1 percent to 946.36 at 2:33 p.m. in New York as nine stocks fell for every five that rose. The gauge of 1,654 companies in 23 developed nations has slipped 1.8 percent this week as the U.S. lost more jobs than projected.

“People realize the economy isn’t as bright as expected,” said Franz Wenzel, deputy director of investment strategy at Axa Investment Managers in Paris, which oversees $678 billion. “Over the next couple of weeks or even months, the stock market will trade sideways at best.”

Europe’s Dow Jones Stoxx 600 Index fell less than 0.1 percent as eight stocks declined for every five that advanced. The measure has slipped 5 percent since June 11 on speculation share prices have outpaced the outlook for economic growth after a three-month rally pushed valuations to 25.6 times earnings, the highest level since 2004.