Five Things I Think, I Think…

Germany's economy is awful, and its stock market has gone to all-time highs... that does make sense in today's environment. Plus, an alligator goes to Buffalo.

Dear Fellow Expat:

I'm sorry for the light editorial schedule this week in Postcards.

I’ve spent most of my time in Python attempting to recode our equity strength signals and building a new platform around sector-specific ETFs.

As I told Risk members on Wednesday, we moved back into the Green on the S&P 500 reading.

And the markets have continued to climb higher.

Volatility is again slumping.

Shorts continue to cover. The same rules we’ve followed since focusing on momentum and liquidity set the tone for the rest of January and 2025.

No. 1 – Germany Reminds Us Why Markets Are So Great

We continue to tell you that the markets are not the economy … and the economy is not the markets.

Here is another great example of why.

As I noted this morning, all the economic problems in Germany are mounting.

The manufacturing sector is in disarray thanks to its energy problems.

The German economy shrank for the second straight year, with a GDP drop of 0.2% in 2024. Now, China is inspecting shuttered auto f…