Volatile sentiment continues to prey upon the pundits. Despite the drip-drip feed of news for ravenous perma-bears, we have occasional flashes of sunlight illumination potential uplands that are never reached. This is one of those days.
The market swings from the current focus on 'double dip' (best viewed as the exhaustion of the stimulus card and reassertion of the deleveraging process). At one end is negative growth and deflation, at the other is very very slow growth and deflation. There is too much emphasis on growth and not enough on the pain needed to sweat out the debt.
We are still in the sauna and governments are pouring more water on the coals.