The Top-Down "Un-Reality"

Tyler Durden's picture

US equities closed the week at new all-time highs - and yay-verily the world of long-only asset-gethering talking heads celebrated this as in some way confirming their long-held 'belief' that the US is the cleanest dirty shirt and where-else are you going to invest (you dummy!!). Of course, reality is far different - as Seth Klarman noted, if it's all so great then why did Bernanke need to stick-save us again this week? The bottom-line from the top-down is that the US is in fact the 2nd worst performing macro-economy of the year of the majors (2nd only to China) compared to expectations. What the following charts indicate though, is an interesting divergence between macro-reality and market-perception that is evident among the nations of the world that print money to save themselves... and those that are not (yet)...

 

NOT the cleanest dirty-shirt - not even close...

 

But let's dig a little deeper... here are three regions that are NOT printing money... seems like macro and market are tending to stay together reflecting some reality...

 

and those nations that ARE printing money...

 

Notice any difference?

 

Still a believer that it will all be ok?

 

Charts: Bloomberg and @Not_Jim_Cramer