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Thursday, March 19, 2015

Everyone hates US stocks - because they're morons


Bloomberg - everyone hates US stocks. Let's whip out the derp and play with it:

With interest rates poised to rise and Europe ascending, the percentage of global money managers who are underweight American equities is the highest since 2008, a survey by Bank of America Corp. shows. At the same time, clients of exchange-traded funds have pulled about $14 billion from U.S. equities this quarter and added $29 billion to international stocks, data compiled by Bloomberg show.

How did that underweight-US position play out for you in 2008, Whitey?

Europe, in particular, has gained favor, as the Stoxx Europe 600 Index has rallied 16 percent so far in 2015, with benchmark indexes in Germany, Portugal and Denmark rising more than 20 percent. The gains came as European Central Bank President Mario Draghi introduced a 1.1 trillion-euro ($1.2 trillion) quantitative-easing program aimed at spurring growth and thwarting deflation.

That's a big fucking mistake right there. Yes, Draghi has brought in QE, but all of Europe is fighting against this with boneheaded contractionary fiscal policy. Doesn't anyone remember when Merkel tried to piss off Draghi and make him quit his job?

But, I guess the white-ass honkies in the US are still entranced with that tiny bit of fantasy economics that they read off the back of an Ayn Rand book, and so they'll plow money into a Republican-style European economic clusterfuck in the hopes that it gets better despite all European governments except Greece's wanting to drive their continent into a permanent economic depression.

You gotta wonder if these guys remember how shitty the European market's returns were even when they were in the middle of its real estate bubble. There's never been a European stock worth owning, bar maybe Nokia for a bit, and yet Whitey thinks he can make more money on European equities in the middle of a conservativism-driven permanent liquidity trap than he can in the US, which is seeing 3-4% growth so far and the beginning of a demographic boom.

A net 35 percent of respondents in Bank of America’s survey picked the U.S. as the worst place to invest in the next 12 months, the most in almost a decade, while the proportion of those favoring Europe jumped to a record 63 percent.

Wow. most negative in a decade. That includes 2007 and 2008. That includes the gloom and doom of 2009, when people were taking sideshow geeks like Marc Faber seriously.

I really think Whitey is on the wrong side of the boat here.

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