Friday, January 11, 2013

Postive contagion - is that a bubble?

We spoke a lot about contagion when things go poorly but I believe there is a positive contagion when things go well. And I think that’s also what is in play now. There is a positive contagion.”

ECB President Draghi

Contagion has always been thought of as a negative to the market. Certainly we think of a medical contagion as an epidemic. If there is a positive contagion that could be thought of as a bubble. It could be a herd mentality. It is unclear that we want to base a recovery on any contagion but on an positive growth environment.  

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