A Few Quick Thoughts On Why Markets Around The World Are Surging

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Markets are surging.

The yen is weakening.

Homebuilders are up 3%.

European financials are on fire.

What’s going on?

Dave Lutz of Stifel, Nicolaus passes along some thoughts.

We summarize:

  • Everything started earlier with Germany. There’s a belief that Germany will “capitulate” and let the ECB pump more.
  • Japanese investors are selling the yen and buying European assets.
  • Homebuilders are strong.
  • Hedge funders are heavy buyers. The “most short” basket is a big outperformer.
  • More chatter about austerity abating.

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