If I remember correctly, at the end of last year, the predicted biggest market trend would be the so called great rotation when the money would shift from low risk assets (UST, Bunds etc.) into riskier ones to create yield in real terms. This week the spread between the eurozone core and periphery had been compressing with no drop in equities, showing this kind of behavior. Investors sitting in risk havens have been burning money and some growth momentum seems to return which might lure money out of this asset class. If this trend continues then I think it`s a good sign of some real recovery and provides more room for equities to drift higher.


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