Category: Daily Instagraph

A USD 10,000 investment in the US stock market in 1990 would be worth USD 324,808 today. This remarkable return, however, came at a cost: significant drawdowns along the way. The most severe declines occurred during the dot-com bubble and the Global Financial Crisis. Even five years ago, at the height of the pandemic, the … Continued

The relative attractiveness of major equity markets remains largely unchanged since the recent decline of the Mag-7. The S&P 500 is now trading at 21.1 times forward earnings—slightly cheaper than at the start of the year but still at a historically high premium compared to its 20-year average. Europe continues to trade at a significant … Continued

As rightly pointed out on Bloomberg in John Authers column, strategists’ year end targets for the S&P 500 have hardly moved over the last weeks. In the meantime, and thanks to the (geo)political and economic turbulences induced by Trump 2.0 , the investment landscape has fundamentally changed for equities. There is a great rotation out … Continued

As the annual political brinkmanship over a potential U.S. government shutdown unfolds, the deeper, unresolved issue looms large: the national debt. The United States now carries a staggering $36.56 trillion in total debt. Over the past 12 months, the country has spent $1.178 trillion on interest payments alone – surpassing the $886 billion allocated for … Continued

In the current market turbulence, we are witnessing stark disparities in the scale of equity corrections. Since January 21, developed markets have underperformed emerging markets by 7%, growth stocks have lagged value by 11%, US large caps have trailed the rest of the world by 11%, and cyclicals have underperformed defensives by 18%. Within developed … Continued

The sea of red in equity markets shows no signs of abating. The S&P 500 has now declined 8.6% since February 19, 2025, while the Mag-7 stocks have plunged 20.5% since December 17, 2024. Just yesterday, the S&P 500 wiped out $1.4 trillion in market capitalization. A mix of high valuations, geopolitical tensions, and economic … Continued

The Magnificent 7 stocks, which were the biggest drivers of the S&P 500’s performance last year, have now become its biggest drag. As of March 6th, the S&P 500 had declined by 2.4% year-to-date, while Apple, Amazon, Google, Meta, Microsoft, NVIDIA, and Tesla collectively lost 9.9% of their market capitalization. This implies that the rest … Continued

Benjamin Graham famously described market behavior with his well-known analogy: “In the short run, the market is a voting machine, but in the long run, it is a weighing machine.” Today, uncertainty—driven by the bold, disruptive, and at times erratic decisions of the Trump administration—has ended a period of calm in financial markets, placing significant … Continued

Three months ago, Germany’s coalition collapsed under economic turmoil. Now, a seismic shift: a €900 billion borrowing plan, the biggest fiscal pivot since reunification. The constitution could be amended within days to loosen the “Schuldenbremse.”. Markets reacted swiftly—Bund yields surged 30bps yesterday, their largest move since 1990. A month ago, the 10-year Bund yield stood … Continued

The geopolitical and economic uncertainty induced by the Trump government is taking its toll on financial markets. The sea of red we saw in equities worldwide is a painful reminder that equities are not going up in a straight line. At ECP, we stick right now to our course as our the case for equities … Continued