The Real Reason Draghi Will Do "Whatever It Takes" To Crush The Euro
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
In November we showed a chart showing the yawning chasm of exuberant faith-in-Draghi hope that was 2013-to-2014 earnings growth expectations in Europe. At the time we remarked - now prophetically - how it would seem Draghi's "whatever it takes" confidence-inspiring orgy of European asset-buying had driven the EUR almost 20% higher from the 2012 crisis lows... and in the meantime had crushed European competitiveness. The hockey-stock hope at the end of 2013 has not materialized - surprise - in fact earnings growth expectations have utterly collapsed in the last 2 months... time for a "whatever it takes" to weaken the EUR jawboning soon (all without the aid of a fallacious and Treaty-busting OMT).
Here is the hockey-stick of European earnings growth hope/hype from the end of 2013... (the green arrow shows the gap between reality and future hope for 2013 and 2014)...
Fast forward 5 months and this is what that black line has become!!!! Earnings growth has collapsed...
"Whatever it takes" might just have to morph into "Just sell it all"
source