I asked 150 investors three simple questions:
Who believes the design of the euro is flawed? About two-thirds of the hands went up
So who believes the euro is doomed? About one-quarter raised their hand
Overall, who has made money trading that view? Just one hand was visible!!!
A great new chart from the ECB shows why they have been so wrong: European integration has been rising for more than 60 years and is now accelerating – firstly because of Greece, but now Putin is a potent force to drive further integration. When will investors notice these profound forces at work? Remember the old investor's adage: "The Trend is your Friend" and the trend is clear.
Source: ECB, Occasional Paper Series, The four unions “PIE” on the Monetary Union “CHERRY”: a new index of European Institutional Integration.
© Graham Bishop
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