‘‘China and other emerging markets are doing better,’’ says Federated’s Pazzanese. ‘‘That’s great news to German and Italian exporters.’’
Another reason is that financial markets often heal before the underlying economy, says Martin Jansen, lead manager for international equities at ING Investment Management. Investors are supposed to be forward looking, if a little trigger happy. They ditch assets if the future suddenly looks bleak and buy them back again on signs, or hope, that things will eventually get better.
‘‘Stability is one thing,’’ Jansen says. ‘‘Getting back to normal is another.’’