The week in charts – episode 3

11.German Manufacturing Boom

The Eurozone remains in excellent shape, despite all the political hurdles. Germany’s Manufacturing PMI hit a solid 58.3 in March.

10. Producer Prices Spike

Germany also provided more evidence that the great inflation ‘scare’ is behind us. CPI above ECB target, and PPI up 3.1% YoY, the steepest rise in five years.

9. Inflation Puzzle

One interesting question remains, however. Will inflation follow the PPI on their way up?

8. The ‘power’ of QE

The inflation scare may behind us, the effects of extraordinary monetary policy are not. More consumers are being punished for ultra low bond yields.

7. Superpower

Japan remains the world’s QE superpower. The Bank of Japan now holds almost 40% of all outstanding Japanese government debt. Isn’t that just convenient.

6. Stimulus Overdone

But really, how much QE do we need at this point?

5. ECB on the Move

Things are moving, however. Better growth and higher inflation pushed the chance of a deposit rate hike by the ECB this year to above 50%.

4. Fund Survey

Thinking about investing in bank stocks? Let me remind you that everybody else has already done so. Same goes for shorting the EUR or GBP.

3.One size never fits all

One of my favorite Eurozone divergence charts. Greece’s debt-to-GDP ratio equals 177%, that of the Netherlands (budget surplus 0.4% of GDP in 2016) is 61%.

2. When does Valuation Matters?

US stocks are expensive by every measure, including price-to-book.

1. It’s all relative!

The S&P 500 Index finally fell more than 1% in single trading day. We almost forgot what that looked like. Still, from the low in 2009 you’re doing pretty ok!

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