If The Market's Disconnect With Economic Reality is Over, Watch Out Below

Tyler Durden's picture

As market participants ponder the disappointing post-QEtc. performance on their 'Bernanke/Draghi-Put'-floored equities, perhaps these three charts will help in comprehending just how much hope there is in the world's equity markets. The disconnect from macro-fundamental is not unique, but has had significant and extremely rapid repercussions in the past. It seems, however, that just like AAPL, everyone believes everyone else to be the greater fool - and this time is different.

 

Germany's DAX 'disconnected' from economic reality in 2007 (to the euphoric side) and in 2011 (to the dysphoric side). It seems once again that hope has taken over...

 

The S&P 500 also exhibits the same disconnect - though even more significantly...

 

This happened before in the US...

 

That didn't end so well either...

 

Charts: Bloomberg