Stock markets in Italy and Spain have risen from the ashes. Both will lead 2014 with around 25% in gains. This number makes sense, because the peripheral countries are off of their historic highs and stand to make a lot of money.
The figure also suggests that corporate profits, bank stability and expansive central bank policies will all be restored.
Still, there is no room for excessive optimism considering that the Spanish stock market's average PE ratio is at an all-time high and the biggest gains will come from a healing banking sector that was bailed out in large part by public funds.
