The CDU got hammered in another local election. Economists say this threatens growth prospects. Political instability is rising. Nobody knows what any of this means for your portfolio.
German voters moved left and far-right simultaneously, which sounds like a physics problem but is apparently just democracy. The ruling party took a beating. Analysts called it a disaster. They used that exact word, as if elections weren't just scheduled events that happen regardless of who wants them.
Here's what matters to you: nothing. The CDU could win every election for a decade or lose every election for a decade and your technical indicators would show the same squiggly lines either way. You'd still be drawing triangles on a DAX chart like a child with a crayon. You'd still be waiting for the golden cross that never comes.
Pro-growth reforms are now threatened, economists warn. They say this with great concern, as if reforms ever happened on schedule or politicians ever did what economists recommended. The threat level has been upgraded from yellow to orange. Your stop-loss remains exactly where it was yesterday, completely unaware that German voters exist.
Some retail trader in Ohio is reading this headline right now. He's convinced it explains why his leveraged Europe ETF is down 2%. He's typing "CDU election impact EUR/USD" into Google. He's about to make a very confident trade based on a local election in a country he cannot locate on a map.
The far-right gained ground. The left gained ground. The center lost ground, which makes sense because the center is just people who haven't picked a side yet and elections force you to pick a side. This is somehow a surprise to political analysts who get paid to understand politics.
Your moving averages don't vote in German elections.
Photo by Marek Studzinski on Unsplash
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