Firstly, you say I use "big words" when really I'm just trying to post in proper English... something I'm not going to apologise for. I use the words that I think will properly convey the point I'm putting across. Is that not what words are for?
Secondly, when do I act like a know all? You're the one who acts like a big shot on his dads money and regularly blows accounts worth thousands. I come on here to ask questions, as I you yourself experienced earlier in the thread.
Thirdly, the reason why I was having difficulty explaining my self is that I didn't expect you not to see how the whole euro risk episode has presented itself across other markets and I was trying to explain the mechanisms for a tightening spread - namely net flows out of US and into Dax (not necessarily directly but you seem to have an innate inability to read between the lines and quickly resort to infantile insults) in this case in the medium/long term and reasons why this could happen. The bulk of equity holders are institutions and are in it for the long term, as you already know, which is why I mentioned relative nvp and risk mandates as one reason - especially when year start portfolio rebalancing gets going.
Fourthly (lol), as you have always big a proponent of economics on the t2w, I thought that the chart would interest you in the capacity of what it presents/suggests in terms of regression analysis.
DAX Index Chart - Yahoo! UK & Ireland Finance
The shift (spread widening) either represents a new constant or possibly an adjustment to an existing constant. I've already told you what I believe this to be.
the fact the sp has held up so well in the face of a good little dollar rally
does this not lend weight?
Lastly(lolly loloth long post), what position would I take to capitalise on the of the spread tightening? Take a guess. Have I taken any positions? Nope.
