Were does German investor confidence go after months of good news about rising industrial orders? Dumb question, where else could it go? It dives into the Keller (cellar) where it belongs, verdammt noch mal (damn it all to hell).

“The ZEW Indicator of Economic Sentiment for Germany dropped slightly by 5.2 points in October. Compared with minus 22.2 points in September, the indicator’s current level of minus 27.4 points is now far below its historical average of 34.3 points.” And that means that these numbers are really awful, I guess. And the 298 egghead analysts who figured all of this out certainly can’t be wrong. Or can they?

And no, I haven’t the slightest idea what any of these numbers mean, either. Especially when the German economy is actually picking up right now for once. But being that any figure below zero usually represents negative investor sentiment, this doesn’t look good, in the short term that is. So everybody is satisfied, I guess. Or will be, in the long term. Because if everything’s down now, that just means that things will soon start to go Aufwärts (back up) again soon. Or at least it could mean that.

But I’m just not sure whether I’m confident enough about the present situation to stick to that statement or not. And I’m not even an investor. Much less a confident one.

Come visit me at Observing Hermann…

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