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WTF Chart Of The Day: European Equities Edition
Once again, the flood of momentum-chasing hot-money provided by the world's central banks' printfest is leading investors to push up European equities markets to the highest level since 2011 amid optimism that the region is recovering (top-down GDP dashed that hope this morning). Furthermore, since earnings are apparently the mother's milk of stocks, investors are entirely ignoring the fact that earnings expectations for the European region are collapsing to their lowest since September 2009. As Bloomberg notes, "investors in Europe continue to buy hope for an upcoming earnings recovery," but as Tristan Abet of Louis Capital warns, "there is a limit to that rationale... the risk is that the market loses patience."
Chart: Bloomberg
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And the VIX is going to ZERO.
Nothing to worry about!
" the risk is that the market loses patience."
what is this thing you call market?
is it anything like the high pot poker table at the Sands in the early 60's ?
..but what do I know.. a million here.. a million there -- pretty soon soon you are talking real money.
..not like it's the trading desk at GS today.
Gravity has been eradicated? I can step off tall buildings without any fear (no risk)? These people are great! Anyone that can make risk totally disappear has to be a god I tell ya!
Bernanke has invented anti-gravity. Soon we'll be able to live in the clouds with floating mcmansions
What Market ??? The Computer generated trades that are programmed to suck you in, then give you a lower price to sell into.
There is "No Price that is Truth" in the market. The Squid always wins at somebody's expense.
All prices are determined by the HFT's and the Squid who make and take your money every day.
Send this to Yellen.
Let's see if the stupid cunt can figure it out.
Is it really necessary to use the "C" word in such a derogatory fashion?
That reminds me....I miss reading Inthemix's posts.
i agree.. it is out of order to use the C-Word on such a coniver.
I agree.
What's wrong with the good ole "Fuck you, Yellen!"
Patience, people. Wait for a coalition to form in Berlin, and crown Merkel chancelorette. Until then nothing will be allowed to upset her bratwurst-cart. And I mean nothing.
damn.. i am salivating at your description.. but a good Pilsner and some Krout is in order now.
Yup... QE has no effect on asset prices...
Well, there was no QE during the tulip bubble.
Maybe it IS just filling prostate glands.
aw crap-- I thought that two lips anywhere near the general vicinity of my prostate was a good thing..
Speaking of "WTF"...
Not a good day for BTC either.
http://www.techworm.in/2013/11/another-bitcoin-exchange-from-czech.html
i have not paid much attention.. but, gee you have to expect a lot of volitility into something so emotion packed.
It's not a question of being "emotion packed". It's a question of key strength and who' owns the network around those key(s) including what's in between them during "key exchange".
As much as I believe heart and soul that BTC has an important role to play in breaking the cast system of the currency model that has screwed everyone and everything -He who owns the network unfortunately controls everything within it!
At least in the present cycle.
:-) and the wheel goes round and round..
Your statement is complete nonsense and has nothing to do with the hacking of the Czech Web site.
The "market" loses patience?
What fucking market?
And where are all those "investors" going to run?
Slowly money will continue to disappear into the holes of banks' balance sheets and stock buy-backs (until most companies remove themselves as "public" offerings [haven't we figure out by now that the "public" is broke? like, duh, if folks can't figure out exactly how this goes then they ought to just give up and jump, NOW!])
"Earnings? We don't need no stinkin' earnings!"
I'm thinking that people will start accepting just a draw: anything is fine as long as it's NOT a loss! And, as an added bonus, less returns on capital investments means less taxes- yay! (hm... maybe a loss wouldn't be bad?)
Compared to the US on valuation, excessive gains since 09 lows, sustainability of profits as a percentage of GDP, share of manufacturing business, trade balance, Europe looks much better. As long as the US continues playing its stupid and destructive game, there's no reason why every else shouldn't join the party.
Everything else is just a sideshow. Globally it all comes down to the Fed and the US dollar.
"Globally it all comes down to the Fed and the US dollar."
No, globally it comes down to Natural Captial, cheap and abundant energy/oil to be more specific.
In case you missed it: EVERYONE IS MASSIVELY BROKE AND IN DEBT! (the market numbers are all fucking tweaked in order to give the illusion that all is on the mend)
Don't disagree. Putting it together, globally it comes down to the US dollar and how long the rest of the world is going to give up its scarce natural capital in exchange for US paper promises (and military 'protection' too, I guess)
Yes, you've got it right :-)
all it need is a push, just give them a fair reason to trigger the sell-off, say....when Yellen start taper, that's when music stops
I'm still cuirous as to where all the big investors are going to run to. The core herd will stay a clusterfuck until the majority no longer participate and have moved on (some other "System"). The keepers of the old/current system will never admit defeat, and they make their existence off of people believing in their illusion.
One day people will be too busy surviving to take note of crumbling mansions...
Does anybody trade on fundamentals anymore? If 80% of all trades are getting done via computer algorithms, doesn't that imply that buys and sells are being based solely upon technical factors, augmented maybe by bots looking for news items? Why should fundamentals matter under such a system? Trades are being made either to profit from some minute fraction of a penny created by quote stuffing, or pursuant to some mathematical formula which focuses on nothing more than the data from preceding trades. With such myopic strategies, will anyone be surprised if these traders walk off a cliff?
There's two words here to contemplate:
1) "Trade"
2) "Fundamentals"
If "trade" is merely speculation hoping for a quick buck then it's no longer possible by anyone/anything than the big corporate-controlled algos (well, sure, like a broken cloock one can get lucky, but it's not a strategy for ensuring survival I wouldn't think).
"Fundamentals," when applied to "trade," which is really about beating the other guy/algo out, is based on deception, in which case the very notion of something on this order presenting some predictability is, I'm afraid, not really logical/rational.
Now then, if you're asking what one should do in order to live, well... THOSE fundamentals would be: Food, Shelter and Water. I got greedy and decided to "trade" in this fundamental direction: I have shelter and water and am working on producing food.
I long ago got tired of the clowns and decided that hanging out at the circus wasn't any way to rid myself of them.
And to add...
"will anyone be surprised if these traders walk off a cliff?"
And they [traders] will do so with a LOT of OPM: it's how it's been done for some time now- transaction volume is what matters.
BBG apparently said: ""investors in Europe continue to buy hope for an upcoming earnings recovery,"
Prombelm with that statement is: It's not _European investors bidding up stocks in Europe, It is US investors.....