Europe Falling

Yes, pessimism over Europe’s prospects is high, and valuations in Europe are relatively low. But both for good reasons.

Below is another data point on how the markets are reflecting the divergence in economic performance and prospects between the US and Europe. Anticipated US inflation 5 years hence is around 2.4%, a little lower than at the start of the year when it was about 2.6%. But forward inflation in Europe is sinking fast, now at just 1.7%, down from 2.2% at the beginning of this year.

• 23 Dec, 2014

  GDP

  Normally, I wouldn't comment on any single economic release, but today's GDP revision adds to the mounting evidence of a ...

• 17 Feb, 2017

  Non-Zero Sum

  There are prominent voices (and tweets) urging us to pull back, dig in, and lock the gate. This rising chorus of ...

• 29 Oct, 2014

  DOUBLE LEVERAGE?

  Oil prices are down about $30 from their highs; great news for consumers and the big oil importers (China, Korea, ...