We didn't give up the gains because the European Central Bank (ECB) is printing money, and it is money that can be used by banks to lock in a great return while bolstering the sovereigns. We didn't go down because it could be that they are printing about a trillion dollars' worth of fire power right now. We didn't go down because, darn it all, in a world starved for yield, these sovereign bonds are starting to look interesting. We didn't go down because things are better there.
But we didn't go up because there's a tremendous amount of uncertainty here, like the crummy Emerson Electric (EMR) and CarMax (KMX) numbers or the mother of all disappointments, Oracle (ORCL), and all of the collateral damage it inflicted.
Plus, the high fliers are to die for - meaning, they are killing you.
I know we have every reason to be ultra-skeptical of anything Europe. However, my skepticism was rooted in the ECB's obsession with inflation and the desire not to grow, but just to cut.
How can I be as skeptical when the central bank has changed its tune and is printing money and is more pro-growth than I thought?
Who knows, they could be anti-growth shortly. That's just not the case, now though. Europe has upside.
Therefore so do we.