No complacency

The latest BofA Global Fund Manager Survey reveals that the world's largest portfolio managers are heavily invested, while maintaining cash levels near their lowest in 40 years. This widespread optimism, largely driven by FOMO (fear of missing out), leaves little room for error, particularly in a context where Chinese and European economies remain sluggish, interest rates are elevated, political uncertainties abound, and markets have enjoyed a more than two-year rally. At European Capital Partners (ECP), we believe this is a critical time to exercise caution. With the quarterly earnings season approaching, we remain committed to a highly selective approach—focusing on companies with strong quality earnings while ensuring we avoid overpaying for any investment opportunity.