Which Of These 4 Markets Would You Invest In?

Tyler Durden's picture

We have removed the levels to protect the innocent but which of these equity markets would you be adding to today?

(Hint - one of these markets' sovereign risk has just been downgraded to B; one has inflation expectations of +30% for the next 12 months; one plans to double its monetary base in two years; and one is based on an entirely manufactured recovery in a key US industry thanks only to cheap money)

 

 

and if Stocks aren't your thing - then how about choosing one of these 4 bond markets?

(Hint - one is expected to take another serious haircut on its debt within the next year; one is the bonds of a nation expecting to massivley increase its inflation in the next two years; one is the most liquid safe-haven bond market in the world; and one is a nation that wonders aimlessly absent real government amid depression-like economics and unemployment)

 

All seems very normal eh?

Charts: Bloomberg

ANSWERS

Market 1 - Venezuela - Caracas Stock Index
Market 2 - Argentina's MERVAL Index
Market 3 - Japan's Nikkei 225 Index
Market 4 - US Homebuilders

Bond 1 - Greece (10Y GGBs)
Bond 2 - USA (10Y Treasury)
Bond 3 - Italy (10Y BTP)
Bond 4 - Japan (10Y JGB)