Editor's Note: Below is a chart and excerpt from today's Early Look written by Hedgeye CEO Keith McCullough.

Put simply, Mr. Market usually starts discounting future “fundamentals” through the lens of volatility. If rising volatility starts to TREND, fund flows seek assets with falling volatility while they try to avoid those with rising volatility.

Is that one of the reasons why one of the more important players in macro markets, Bridgewater Associates, is currently one of the few vocal bears on European Equities? 

A)     I think so (front-month volatility in the EuroStoxx 50 just ramped to 28) … and
B)      It’s nice to finally have some credible company on the short side of relatively “cheap” European stocks!

I don’t care what “relative value” one sees on the consensus surface area of a P/E multiple of an equity market if...

CHART OF THE DAY: No Place In Our Model For "Relative Value" $DAX - 02.13.18 EL Chart