About The "Europe Is Recovering" Meme

Even Mario Draghi noted this week that the markets should be ignored by policy makers (as they should focus on reforms) and explained that the European economy has downside risks and is “weak and fragile” So why is it that so many still claim Europe is the place to be? Aside from it being an excuse for nothing less than momentum-chasing muppets to pile in and get a soundbite on TV, the truth is that European macro data is not only now worse than the US but has fallen to 7 week lows. So your new clean shirt is the US again… just ignore the debt-ceiling issues, earnings warnings, and looming Fed taper…

 

European macro data is now well below US and has fallen to 7-week lows…

 

but for now the trend is your friend as investors pile into bets on a US slowdown (value beating growth) and a European recovery (growth being value)…

 

Charts: Bloomberg

    



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