MarketsMuse Global Macro curators always look for substantive and objective observations from outlets that are truly substantial within the context of presenting thoughts and comments from experts followed by the most discerning investors. With that in mind, we salute the folks at UK-based Substantive Research for this morning’s note, which includes the following kudos to a global macro pundit who MarketsMuse takes credit for spotlighting early on….

Giving up on the European recovery theme?

Neil Azous from Rareview Macro published a great note that encapsulates a couple of big themes; Inflation targeting by central banks, and the impact of QE on equity markets, and in particular, European equities. There’s a big question about the relevancy of inflation targeting in today’s central bank user manual and Rearview has neatly put together a collection of quotes and academic work from central banks on this. with their own take on what this might mean for policy making in the future. How does this relate to European equities? If inflation targeting is no longer an effective policy tool it certainly limits policy options for the ECB. Azous also notes that European equities haven’t had the same tail winds that the US and Japan markets have had whether that is the direct result of QE policy, or corporate actions. This ”underperformance” shouldn’t signal less faith in the European recovery story, and he produces a laundry list of reasons to back the view for being long european equities here.