Take a look at this chart of the 10yr vs Equities to 1869

After years of negative news on well, just about everything equities have been rallying while yields are dropping. The chart below shows France, Germany and Spain, along with each’s 10 Bonds vs Equity Index back to 1869.

All three equity indices are spiking and all three yields are diving. Are we getting ready for another EU bailout?

 

10 Year Bonds vs Equities to 1869
click for larger chart

 

Hat tip Ralph M Dillon
rdillon@globalfinancialdata.com
www.globalfinancialdata.com

Category: Markets, Trading

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

7 Responses to “Why are Equities Surging in Europe?”

  1. rd says:

    The big lesson from this graph is from 1939 to 1945.

    It is clearly better to be a neutral power or collaborator than a warmonger. The French and Spanish stock markets did quite well from 1939 to 1945.

  2. JimRino says:

    EU Stock Market MORE Corrupt then US?
    That can not be.

  3. wcvarones says:

    Zimbabwe Ben, meet Zimbabwe Mario.

  4. DSS10 says:

    Because there is soooooo much frigging cash in investments as oppossed to being available for consumption. The money is in the wrong place at the wrong time. Europe can’t “invest” themselves out of their problems…….

  5. AHodge says:

    i have lost some on my recent short term shorts
    but i think the rally is bailout hope
    and rate cut liklihood
    and markets not capable of analyzing
    that a bailout and rates cuts will do little for the Eurozone macro and credit supply
    the economy is falling off cliff
    industrial production down over 4% not annualized last two months
    an acceleration
    thats for the entire eurozone
    germany and the other stronger countries are rolling over
    manufacturing trade sales–employment– are all rolling over

    i have put some less leveraged long term shorts on basic macro italy germany spain–less banking system shorts
    so i can just sit and wait for 6 months or so…
    also outright short UBS
    which is allowed and may crater

  6. Larry says:

    O Eurozone, Complacency is thy name! And no lack of procrastination in facing up to thy enemies!

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