Europe and US Un-Decoupling
The US is no longer the cleanest dirty shirt, or least syphilitic hooker in the whorehouse as we so responsibly noted previously. Year-to-date, the US Dow Jones Industrials 30 and Europe's EuroStoxx 50 - the two major blue-chip indices of the beleaguered regions - are now equally awesome at +11.35%. Of course, Gold and Silver are outperforming both of these (and the long-bond is unchanged) but nevertheless, even with EURUSD now up over 200 pips on the year, 2Y Spain yields are unchanged and 10Y Spain yields up 70bps. Context is king here, especially when we just keep anchoring to the latest 5 minute trend.
Year-to-date changes for broad asset classes... Silver winning with Gold 2nd, and EU/US equities tied for an honorable nominal bronze...as the USD is down 1.8% and the long-bond unchanged...