All focus on Europe these days. There's just too much talk, but it does not feel like officials will be able to talk us out of this. Looks like the markets are testing too which extent the credit markets can be stretched until long term bond investors come in. Yet the resilient equity markets in Germany and the US suggest market is not yet pricing in contagion. But it is spreading through higher interest rates that will separate boys from men. Which country is prepared to withstand interest rates hit? Feels like only Germany will be able to...
Otherwise mixed feeling about economy. But I still have questions that remain unanswered. Why China is not raising interest rates as its peers? Is there something we do not know? Is QE in the US a failure or success? Economic data post announcement disappoints but sentiment continues to rise.
Since the news are coming out almost hourly it is impossible to run charts and to have a view as most likely I will be wrong. So sit and wait for the moment.
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