The Japanification Of European Stocks Has Been Underway For 3 Years

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		Tech Entertainment Wall Street Markets Strategy Sports Lifestyle Politics International Video Latest Monday, May 21, 2012 CHART OF THE DAY: The Japanification Of European Stocks Has Been Underway For 3 Years Does the experience of Japan foreshadow where Europe is headed? So far, it looks pretty spot on, according to SocGen: After the bursting of the bubble, the Japanese equity market became highly cyclical. This contrasts with the 1980s, when it was impervious to swings in the cycle. We believe this change in market behaviour is a result of deleveraging in the Japanese economy. The same pattern has been observable in the European market since the Lehman bankruptcy in 2008 (see next chart). Given the increasingly uncertain political situation in Europe and consensus building around necessary policy measures going forward, it looks like perhaps the ECB could be just in time to step in and send those equities on their next leg upward. Here's a look at the Euro Stoxx 600 and Japan's Nikkei. GET READY: This Is What Happens If Greece Exits The Euro > Read » Also On Money Game Today: Here's The Big Jeff Gundlach Presentation That Brought Down The House At A Conference Last Week 2 Top Economists Break Down What China's Premier Really Said About Growth Top Economists Are Fuming After House Passes Census Budget Cut EL-ERIAN: A Greek Exit From The Euro Is 'Probably Inevitable' Advertisement CHART OF THE DAY: Why Facebook Never Fell Below $38 Per Share CHART OF THE DAY: Greece's Big Run CHART OF THE DAY: Goldman Shows What Happens If We Fly Off The Fiscal Cliff Share this: Facebook Twitter Digg Reddit StumbleUpon LinkedIn The email address for your subscription is: dwyld.kwu.jobhuntportal11@blogger.com Change Your Email Address | Unsubscribe | Subscribe | Subscribe to the Money Game RSS Feed Business Insider. 257 Park Avenue South, New York, NY 10010 Terms of Service | Privacy Policy

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