Forget the burgeoning recession, German stocks are on fire.
Thanks to optimism around trade and the concurrent pro-risk rotation across assets, the DAX is now the most overbought since May.
Trade-sensitive German shares are on track for a fifth consecutive weekly gain and are within shouting distance of the record high hit in January 2018.
Not surprisingly, carmakers have led gains. Daimler, Volkswagen and BMW have rallied sharply in November on the heels of big gains last month.
That contrasts with big losses logged in August and May, when trade tensions were front and center after Trump broke the Osaka and Buenos Aires truces.
Notably, the DAX is outperforming the Stoxx 600 in 2019. German equities are gunning for a 25% gain for the year. That would be the best performance since 2013.
This, even as the world's fourth-largest economy is almost surely in recession. The manufacturing PMI bounced a bit in the final print for October, but it's still a disaster.
As noted on Monday, readers should do themselves a favor and not be tempted to join the chorus of armchair economists peddling the patently ridiculous notion that Germany should just sit on its hands in order to sa
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