Gavekal Capital: French versus German Bonds and the MSCI Europe

Tuesday, February 11, 2014

French versus German Bonds and the MSCI Europe

Over the last five years, when the short-term moving average of the spread between French and German bonds has fallen below the long-term moving average of the same, MSCI Europe has underperformed. While we are not there yet, it is an interesting relationship to bear in mind as the 25D moving average rolls over:

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