Member Comment:

Mr. Nespoli, you are Goldstück!

Two years ago I moved my investments to hold US Indexes as you recommended. Thankfully, I did so because  Germany has not been stable. I am living in Rothenburg and just would like to know should I look at German Stocks again or continue to invest in the US Indexes?

Reply:

Schnecke,

I was in Rothenburg (posts picture) in 1990 when visiting before attending the World Cup in Italy.  It was beautiful. 

Germany seems to be slipping into recession. The composite managers’ index showed the European economy contracted for the first time in six years. The composite fell to 48.5 in September from 51.7 the previous month.  I believe the best thing is to remain liquid, and equities tend to be the better road rather than investment property which is not movable. You can open an account in the USA or even Singapore or Thailand. In that way, you can always move your money offshore as Europe become more aggressive in their hunt for taxes.

The next several years are not like the ’50s or even the ’80s. They are going to be much more choppy and volatile. So this is something you will have to keep an eye on for the trends will tend to swing every 2 to 3 years. We all need a place to live. So what I am talking about is investment properties. They will be highly dependent upon banks willing to lend mortgages. As the banking sector gets hit, you will find that the liquidity in real estate will dry up very rapidly.

Thus my answer is to continue to invest in the US Indexes until further notification. And since you are a Wealth Maximizer member, just stay close to the member’s blog and continue to use the green light signals as entry points to the markets. 

Sincerely

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Unreported news for the US markets:

President Donald Trump said that the Chinese delegation would be visiting the US next week for more trade talks. He also expressed that they are doing well. “I have a lot of options on China. But if they don’t do what we want, we have tremendous power,” he told media.

The estimate that Southeast Asia’s internet economy will hit 300 billion USD by 2025 as an increasing number of people embrace online apps, such as food delivery. This expansion marks a 200% growth rate over the next five years.

The Trump administration added large tariffs on 7.5 billion USD worth of EU goods, mainly food products such as cheese and wine. The EU has announced they will also make retaliatory tariffs. In which they did by introducing “rebalancing” tariffs on about 3 billion USD of US steel, agricultural, and other products. It will be interesting to see if other areas will be affected such as the automotive industry which is a key driver for Europe.

The EIA report showed that this has been a record year in terms of average US crude oil exports. Canada was the top foreign destination, rising 3% this year. Chinese purchases of US crude fell by 64% due to the trade war, however western Europe rose by 66%.

Follow your charts and trade signals.

Germany, Staying Liquid, & China

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