Doubling Up On Europe: From "Less Bad" to Actually Interesting

The pessimism trade is over. The momentum phase has begun

We’ve been pounding the table on Europe for a while, arguing that things could only get less worse. Now the data is moving from “less bad” to genuinely constructive: German manufacturing is improving, loan growth is turning, earnings are beating, and money is flowing in. Knowing Europe, that likely means risks are rising—but it also means the trade may be entering its most profitable stretch and we are doubling up on our long position.