Back on the 19th, we pointed out that markets could be summarized in basically 3 words this year: Dash For Trash.
The trash that people were willing to throw in the dumpster in 2011 is red hot in 2012.
One week later that still holds, even more so.
We were reminded of this by an article in The Daily News Egypt which points out that the Egyptian stock market rose a whopping 7.2% following a peaceful anniversary of the January 25th uprising that saw Mubarak removed from power last year.
Check out this one year chart of the Egyptian EGX 30 Price Return Index via Bloomberg.
But that’s just a microcosm of what’s going on all over the place.
Here’s another fun one. A 1-year chart of the Market Vectors Junior Gold Miners ETF. While gold did fine in 2011, junior gold miners did not, as companies desperately drilling holes in the ground in Northern Canada are not the kind of safe investments you want to make when you’re feeling risk averse.
It too gained 7% yesterday, and is up close to 2% already today.
And really you could go on and on.
There’s Bank of America, which is up over 40% since late December.
The Athens market is up 13%.
People are buying up short-term peripheral bonds like they’re going out of style.
Oh, and have you seen Netflix today?
One other point here: This is exactly the opposite of how 2011 started.
A year ago we were talking about a huge crash in the Bangladesh market, and the dumping of other emerging market stocks.