It is getting downright giddy in Euro Land these days, just as NFTRH anticipated when we began writing about the effects of the strong US dollar/weak Euro dynamic back in Q4 of 2014. The Euro 50 have been outperforming the S&P 500 (as expected) and the Union’s economy is burping up a positive trend.
STOX5E vs. SPX
Sentix Euro Zone Economic Index
EZEI positive trend since October 2014
The US dollar is hurting small but key segments of the US economy (as noted in yesterday’s post) and the forcibly weakened Euro is helping Europe’s economy. For now.
Currency manipulation is not a long-term answer, but it can spur cycles as the US and Japan have shown. The fallout, someday down the road, is a whole other consideration.
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