Since the Cyprus headlines hit, the markets have been ‘confused’. Bonds have been bid, protection has been aggressively chased in credit (CDX) and equity markets (VIX), and FX carry markets have completely decoupled from a quarter-end heat-seeking missile of an equity market. Can it last? Who knows, but one way or another these short-term divergences suggest there are better ways than stocks to play a long bet or, alternatively, the marginal buyer of equities here is disconnected from every other asset classes’ reality.
Interesting in this first chart that each time Gold and Stocks recoupled post Cyprus, Stocks plunged…
Charts: Bloomberg
 |  |
Just Four Charts
No comments:
Post a Comment