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.

• 17 Oct, 2014

  Shades of 2007?

  Nice graphic in today's FT showing the spike in vol and sell-off in risk (Greek bond yields jumped from 5.5% to 9% in ...

• 15 Oct, 2014

  MLPs

  Some historical data from Credit Suisse below: MLPs are off 14% this month, pretty bad. Subsequent performance (no ...

• 4 Feb, 2019

  Only the Lonely

  My first impression when flying into Mexico City a few weeks ago was its vastness. From the air, the city seems to ...