The FXE/SP500 correlation is officially no more. I'll just let the charts speak for themselves:
Since Oct 3rd the FXE had a 0% movement, the SP500 had a 12% gain. Does this look like a correlated movement? (And I have pointed out numerously, throughout the last two weeks how they have diverged.)
The fundamentals of the EU economy, and the need to debase the currency has left the Euro decoupled.
Isn't this just another means of debasing EU denominated debt, that will ultimately help the EU export economies?
If the decline is stable, is this not a good thing, and exactly what the EU needs?
I know Cramer has a different, more horrific perspective, but I am not an economist. (I am a chemical engineer that listens to the data to trade well.) So, take the economic logic with a grain of salt.