Category: Daily Instagraph

Yesterday, NVIDIA experienced the largest single-day drop in stock market history, losing $590 billion in market capitalization as its stock plunged 17%. The scale of the decline was remarkable, with the wealth destruction exceeding Oracle’s entire market cap—equivalent to the combined value of LVMH and Unilever disappearing in Europe. At ECP, we draw several key … Continued

Nasdaq futures dropped nearly 2% this morning as alarm grows over China’s accelerating progress in AI development, eroding the once-dominant lead held by US tech giants. Despite the CHIPS Act, which restricts exports of advanced AI chips to China, Chinese firms have made remarkable strides. Alibaba-owned QwQ and Deepseek, a spin-off from a Chinese hedge … Continued

The only way to truly grow your capital in liquid assets over the long term is through investing in stocks. Since 1928, the S&P 500 has delivered an average annual nominal return of 10%—or 6.9% when adjusted for inflation. Thanks to the power of compounding, a long-term investor would have doubled his/her capital every 7.2 … Continued

According to the latest Bank of America Fund Manager Survey, European equities are making a comeback, with the second-largest monthly rotation into EU stocks in the past 25 years. This shift follows 17 years of underperformance by Eurozone equities relative to their U.S. counterparts. As we’ve highlighted on numerous occasions, Europe faces significant headwinds, including … Continued

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 … Continued

While global attention focuses on Donald Trump’s renewed presidency, Europe faces persistent political and financial challenges. France’s 10-year government bond yield remains elevated at 3.37%, even surpassing Greece’s 3.34%, reflecting investor unease. Despite François Bayrou surviving a no-confidence vote, President Macron’s administration struggles to advance overdue reforms, leaving France politically stagnant. Major European economies face … Continued

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 … Continued

The German economy faces deep structural challenges, with GDP contracting 0.2% in 2024 after a 0.3% drop in 2023. Weak EV competitiveness in the car industry, flawed energy policy, reliance on a slowing China, underinvestment in infrastructure and education, an aging population, and high administrative burdens are dragging growth. Despite the DAX rising 24% over … Continued

There’s a straightforward reason why we remain cautious about the U.S. high-yield space, even though the U.S. economy continues to deliver positive surprises. In today’s environment, the compensation for taking on higher credit risk by lending to riskier borrowers is no longer adequate. Credit spreads have fallen to record lows, even as bankruptcies have surged … Continued

The familiar economic adage states, “If the U.S. sneezes, the rest of the world catches a cold.” Yet as Torsten Slock of Apollo Asset Management notes, in today’s globalized environment, the reverse also holds true. Forty-one percent of S&P 500 companies’ revenue is generated overseas, underscoring how events in Europe and China can reverberate through … Continued