European Macro Fundamentals Slump To 3-Month Lows; Stocks At Record Highs

While "hard" data has been scarce in the US thanks to the shutdown, we recently noted that whet little we had recently indicated notable weakness relative to the survey-based "soft" data. Goldman has, in the past, indicated how little forecasting power the soft survey data has in Europe 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 been sliding since the start of September and has plunged recently to 3 month lows. Of course, the reality is that a record high for European stocks is all that matters to the fast-money charging momo players and betting against divergences from fundamentals is for dummies...

 

 

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, well we already showed that they need a 3rd bailout, so don't start!