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Market entertainers are always flipping around on TV with whatever narrative it is that suits the direction of the day. I heard someone rattle off something about a "depression" in The Czech Republic this morning. While Czech GDP has certainly fallen from its double digit growth graces... this is hardly a "Great Depression." Ask someone who lives there...

Czech Republic GDP came in at +4.2% y/y this morning (Q3 of 2008). This is another deceleration (see chart), but looks outstanding on a nominal basis versus countries that are swallowing themselves with leverage into the thralls of stagflation (Japan). Stocks in Prague are trading up +2.5% as they head into the European close. This is a positive divergence vs. the other countries in the region.

It will be very interesting to watch stock markets around the world reset their performance in 2009. Eastern Europe does have an interesting organic GDP growth story to tell. Romania just printed the highest growth GDP in almost the entire world last week.

Stay tuned into reality - we've got your back.

Keith R. McCullough
CEO & Chief Investment Officer