Germany’s most prominent leading indicator just staged a strong comeback but the route to normalcy remains long.
G7 annual broad money growth is the highest since the 1970s. The consensus argues that this will not be reflected in strong nominal GDP growth and / or rising asset prices because of a faster fall in the velocity of circulation, which has been in trend decline for 50+ years.
Since the Global Financial Crisis, Growth equities have significantly outperformed Value equities in Europe. The Value style has suffered from low and falling interest rates. But it was not a straight line!
KC-10 “Hey Sir, how are you doing?”
F-15 “Great, kind of boring out there.”
KC-10 “Oooh man, I thought you would have some exciting news for me!”
F-15 “No, all quiet on the Western Front.”
…It’s almost like people really wanted a panic…”
It was all very well to say "Drink me," but the wise little Alice was not going to do that in a hurry. "No, I’ll look first," she said, "and see whether it’s marked “poison” or not."