"In David Kostin's latest weekly chart book, in addition to the plethora of
useful charts (if materially incorrect when it comes to fund flow data - never
before have we seen such as disconnect between Lipper/AMG and ICI flow data,
allowing one to pick and chose which data set to use depending on their point),
and market statistics, the Goldman head strategist observes a rather curious
psychological schism, notably as pertains to investor sentiment regarding the
financial powderkeg known as Europe. Namely that while US investors just need to
read a Euro-negative headline to sell everything, in Europe Goldman's
clients are largely oblivious of any and all adverse developments. To
wit: "Our meetings with clients in Europe and the US during the past two weeks
showed investors in continental Europe to be more composed about the direction
and pace of policy decisions. US and UK investors are far more anxious about
potential policy solutions and the cumulative impact of a drawn out resolution."
We wish we could recreate the European nonchalance, in no small part predicated
by the general mindset of a socialist backstop to another global collapse, which
in case of failure, will simply mean the activation of US-based FX swap lines,
and thus America would have to bail out Europe once again like it did back in
2008. In retrospect we can see why nobody in Europe is too worried. Also,
perhaps Goldman should do a better job at distributing the report by its
own Alan Brazil saying Europe is doomed...
We wonder how many of these very unconcerned investors will step up and fill Buffett's shoes who as we disclosed yesterday has been approached to bail out one or more unnamed European banks. Kostin's conclusion: "Investors continue to vote with their feet in US equities..." Feet...Or wallets. Then again not everyone has the benefit of trading with other people's money, and in a worst case scenario, that of the Fed.
More:..."
at http://www.zerohedge.com/news/goldmans-european-clients-are-oblivious-about-developments-europe
We wonder how many of these very unconcerned investors will step up and fill Buffett's shoes who as we disclosed yesterday has been approached to bail out one or more unnamed European banks. Kostin's conclusion: "Investors continue to vote with their feet in US equities..." Feet...Or wallets. Then again not everyone has the benefit of trading with other people's money, and in a worst case scenario, that of the Fed.
More:..."
at http://www.zerohedge.com/news/goldmans-european-clients-are-oblivious-about-developments-europe
