{"id":43159,"date":"2013-10-18T05:35:38","date_gmt":"2013-10-18T09:35:38","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=43159"},"modified":"2013-10-18T05:35:38","modified_gmt":"2013-10-18T09:35:38","slug":"friday-charts-setting-the-record-straight-on-the-united-states-europe-and-japan","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2013\/10\/18\/friday-charts-setting-the-record-straight-on-the-united-states-europe-and-japan\/","title":{"rendered":"Friday Charts: Setting the Record Straight on the United States, Europe and Japan"},"content":{"rendered":"

By WallStreetDaily.com<\/u><\/a> <\/p>\n

Why use lots of words when pictures will suffice?<\/p>\n

That’s our motto on Fridays in the Wall Street Daily Nation<\/em>.<\/p>\n

Once a week, we select a handful of graphics to put important economic and investing news into perspective for you.<\/p>\n

This week, I’m dishing on the one thing more painful than the debt ceiling<\/a> debate, why repetition is important to profitability, and why the fearmongering about the United States being the next Japan needs to stop.<\/p>\n

Without further ado, let’s go to the charts! <\/strong><\/p>\n

It Could Have Been Worse<\/b><\/p>\n

The government is (finally) open again. And that should put an end to the hour-by-hour stock market spasms we endured for the better part of two weeks. Fingers crossed.<\/p>\n

Of course, it never hurts to put our most recent trying times into perspective. In this case, it could have been worse.<\/p>\n

\"\" Despite the uptick in volatility during the shutdown, the average daily percentage move for the S&P 500 Index only increased from +\/-0.43% to +\/-0.55%, according to Bespoke Investment Group.<\/p>\n

That’s a far cry from the volatility we witnessed during the last debt ceiling debate. Back then, the S&P 500 whipsawed, swinging back and forth by an average of 1.92% on any given day.<\/p>\n

So rejoice and be glad that this wasn’t as bad as the last time.<\/p>\n

Turning Japanese? Not Anymore!<\/b><\/p>\n

How many times have we heard that the United States was following in Japan’s footsteps? Too many to remember, for sure.<\/p>\n

I’ll concede, the similarities were scary: runaway government debt, stubbornly low inflation and, of course, a comatose stock market.<\/p>\n

But don’t let anyone dog our great country like that anymore.<\/p>\n

As Michael Hartnett, Chief Investment Strategist at Bank of America<\/strong> (BAC<\/a>), says, “Leveraged areas of the [U.S.] economy appear to be healing more strongly than they did in Japan.” And that’s finally showing up in the stock market.<\/p>\n

\"\" After mirroring the moves of the Nikkei 225 Index for way too long, the S&P 500 is now officially charting its own course.<\/p>\n

Lest you think I’m overly patriotic, here’s a humbling development for U.S. stocks…<\/p>\n

European Blue Chips Win Out<\/b><\/p>\n

After months and months of banging the drum, I know that my wildly contrarian and bullish calls on Europe<\/a> got tiresome. But please tell me someone listened!<\/p>\n

Cheap blue-chip European stocks trounced their American counterparts in the third quarter. By an embarrassing margin, quite frankly.<\/p>\n

\"\" The SPDR EURO STOXX 50 ETF <\/strong>(FEZ<\/a>) rallied 16.2%, compared to a mere 2.3% rise for the SPDR Dow Jones Industrial Average ETF <\/strong>(DIA<\/a>).<\/p>\n

Blue-chip European stocks remain the cheaper of the two. They’re about 10% less expensive on a forward price-to-earnings ratio basis – and almost 50% cheaper on a price-to-book ratio basis.<\/p>\n

Plus, they’re still not getting much attention. In other words, it’s still a contrarian trade, which points to more profits ahead. So stick with the trade.<\/p>\n

That’s it for this week. Before you go, though, let us know what you think of this weekly column – or any of our recent work at Wall Street Daily<\/em> – by going here<\/a>.<\/p>\n

Ahead of the tape,<\/p>\n

Louis Basenese<\/p>\n

The post Friday Charts: Setting the Record Straight on the United States, Europe and Japan<\/a> appeared first on Wall Street Daily<\/a>.<\/p>\n

Article By WallStreetDaily.com<\/u><\/a><\/p>\n

Original Article: Friday Charts: Setting the Record Straight on the United States, Europe and Japan<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By WallStreetDaily.com Why use lots of words when pictures will suffice? That’s our motto on Fridays in the Wall Street Daily Nation. Once a week, we select a handful of graphics to put important economic and investing news into perspective for you. This week, I’m dishing on the one thing more painful than the debt … <\/p>\n

Continue reading “Friday Charts: Setting the Record Straight on the United States, Europe and Japan”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-43159","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/43159","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/comments?post=43159"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/43159\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/media?parent=43159"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/categories?post=43159"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/tags?post=43159"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}