The US stock market has been advancing over the past month while US bond yields basis the ten-year note have been falling over the same period. Over a similar period of time, however, the German DAX has been leading European stocks lower, diverging from US stocks, at the same time the German ten-year bund has been dropping in yield consistent with the US. It is in this environment that Credit Suisse recommends downgrades in certain sectors and thinks pent up European domestic demand will lead stocks in the region higher. [timeless] Credit Suisse likes EU domestic stocks with “natural monopolies”…
Pent Up European Demand Could Drive Euro Stocks Higher
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.