Germany Hits New All-time Highs

This shouldn't be surprising, of course, as European Financials keep making new 52-week highs every week:

These are the types of things you see in bull markets.

I encourage you, go back and look for yourself.

Don't take my word for it.

Just like these lines here.

During bear markets, these lines go up:

Consumer Staples and low volatility stocks in general tend to outperform when stocks are under pressure.

These defensive stocks do the best in bear markets. Historically they are usually some of the worst performers during bull markets.

And what do you know, this time is no different.

Staples and Low Volatility continue to underperform the broader markets.

This is classic bull market sector rotation we're seeing.

It's been next to impossible to be bearish this year. But somehow, investors keep finding a way.

They tell themselves fairytales about recessions, and inflations, and fed printing and all sorts of other silly things to justify their reckless behavior.

They've been going to cash at record numbers.

Another $60 Billion+ was added last week, now pushing $6 Trillion in money market funds, a new record.

5% lol

Tell me how much is left after you adjust that for inflation and pay taxes.

I think you might actually be in the negative, depending on where you live.

The opportunity cost has been expensive this cycle.

Imagine thinking that 5% yield was a good idea?

And don't tell me about grandma needing to lock in her 5% because boomers have been waiting so long for this.

Back out all the retail inflows and you still have a record $4 Trillion by institutions into money market funds.

They're scared.

And they're getting squeezed.

It's been a fun ride.

But based on the positioning, it seems clear that we're still in the early stages of this bull market.

We discussed it all this week on the call. Check out what we're buying and everything we're doing about it here.

Let me know what you think!

JC