I am not going to repeat the messages from last week’s note, but this slide from my friend MC of Macro Charts does an outstanding job of illustrating the extent to which consensus has become lop-sided.
NYFANG futures versus $ACWI, weekly chart.
Littlejohn bringing some Little John energy? 😉
Historically collapses in sentiment reliably precede rallies in EU equity markets.
The Euro Area’s economic surprise index is tracking at levels seen lower only once since the 2008/9 financial crisis.
Tepid growth lies at the heart of Europe and the UK’s woes.
We made the argument in the BUSHY™ launch note that investors are now not being adequately compensated in terms of equity risk premium (ERP) for holding US shares. Clear ERP daylight remains on offer for Eurozone (and other international) equity assets.
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