Stat of the Day: German Investor Confidence at 3 Year High

The confidence numbers globally continue to soar much higher then expectations and much higher then the last couple of years. According to Bloomberg, The May report was dramatically higher then April. It's not that shocking to see a sharp rebound in investor confidence considering the rebound in the markets, but it is surprising to see how its soared to 2006 levels. Not that I know much about German confidence numbers, but in the US we've argued for a while that in 2007-2008 the markets were depressed more then earnings suggested. Alot of people discuss the prospects of returning to the 2007 peak in the market which we continue think won't be that difficult to reach.

To surpass the 2007 levels when global markets were still soaring higher shows how low confidence was at that time.

• The ZEW Center for European Economic Research said its index of investor and analyst expectations, which aims to predict economic developments six months ahead, increased to 31.1 from 13 in April. Economists expected a jump to 20, according to the median of 35 forecasts in a Bloomberg News survey.

• “It’s another sign that a recession will weaken substantially with a return to economic growth toward year- end,” said Rainer Guntermann, an economist at Dresdner Kleinwort in Frankfurt. “Investor confidence has room to improve further over the coming months.”