Why Germany should leave the eurozone (in pictures)

Everyone knows that Italian yield spreads against Bunds have been blowing out:

10-Year Italian bond yields vs. 10-year Bunds.

I thought that I would look at the long-term performance of the other major eurozone stock markets against the DAX. Here is Italy, which is a bellwether for stress within the eurozone. It's been in a relative downtrend since 2005 and there are no indications that there is any bottom. The downtrend has been steady, well-defined and not oversold on RSI.

What about the other major partner, France? Oh, never mind...

How about other "hard" currency countries, like the Netherlands?

The one "silver lining" in this analysis has been the performance of Spain's IBEX 35 against the DAX, which has appeared to have rallied out of its relative downtrend.

How much longer can Germany carry the rest of the eurozone?



Cam Hui is a portfolio manager at Qwest Investment Fund Management Ltd. ("Qwest"). This article is prepared by Mr. Hui as an outside business activity. As such, Qwest does not review or approve materials presented herein. The opinions and any recommendations expressed in this blog are those of the author and do not reflect the opinions or recommendations of Qwest.

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