2nd longest winning streak in 40 years

On the inauguration day of Donald Trump, the US technology index, Nasdaq, had remained above its 200-day moving average for an impressive 466 trading days—marking the second-longest winning streak in 40 years. During this period, the index surged by 80%, fueled primarily by a handful of MegaTech stocks. However, we must ask ourselves: who might take away the punch bowl and end this celebration? Could it be unforeseen technological disruption? Underwhelming earnings? Or perhaps inflated valuations that struggle to align with rising interest rates?

At European Capital Partners (ECP), we approach this environment with humility and discipline. While we recognize the transformative scope of the ongoing technological revolution, we remain committed to avoiding overpayment for any investment. Our focus is on real, high-quality earnings—not speculation or hope. In these times, it is crucial not to blindly follow the crowd or become complacent. Vigilance and a focus on fundamentals are more important than ever.