Europe is still a mess. The economy looks lousy, and yields keep shooting up.
But the one thing that has, perhaps, changed, is that the ECB is clearly doing a lot on the back end to keep the banks alive.
And if the banks stay alive, it’s unlikely that Europe causes a financial crisis in the US.
And if there’s no financial crisis in the US… then it’s hard to see how the US gets slammed from Europe, since really the US isn’t too Euro-dependent. At least when it comes to trade.
This chart is from Goldman.
Photo: Goldman Sachs
So maybe the extreme level of complacency in US markets is totally logical?