The market has had nearly two months in which to frontrun the preannounced ECB QE [3], and as DB summarizes "record European equity inflows this year ($30bn) have been driven by both domestic and foreign investors."
And this is what record central bank frontrunning - with Draghi not yet even lifting a finger to buy bonds (which as we reported last week may not even be there [4]) looks like:
[5]
Leading to the following valuation disconnect, which doesn't need any comment.
[6]
And this time, with every central bank now throwing everything it has at the problem as direct CB interventions in 2015 are set to surpass all records (yes, including Lehman) it really is different.
[7]
