European Macro FundamentalsSlumpTo 3-MonthLows; StocksAtRecordHighs
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While "hard" data has been scarce in the US thanks to the shutdown, werecentlynotedthatwhetlittlewehadrecentlyindicated notable weakness relative to the survey-based "soft" data. Goldman has, inthepast, indicatedhowlittleforecastingpowerthesoftsurvey data has inEurope and yet still, day after day we are treated to the herd of mainstream media types proclaiming that Europe is recovering and that their fundamentals have turned a corner. The problem with that "story" is that is that is a lie. In fact, European macro data has beenslidingsincethestartofSeptemberand has plungedrecentlyto 3 monthlows. Ofcourse, therealityisthat a recordhighforEuropeanstocksisallthatmatterstothefast-moneycharging momo playersandbettingagainstdivergencesfromfundamentalsisfordummies…

So please – please – do not try and pretend that the reason to buy European stocks is that fundamentals are improving – they are not! And Greece, wellwealreadyshowedthattheyneed a 3rd bailout, so don’t start!

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