Category: Daily Instagraph

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

European defence stocks were again on fire yesterday after the Selensky/Trump clash over the weekend. As per Monday market close, share prices of the main defence companies are up this year between a stunning 40% for BAE Systems and 86% for Rheinmetall. The stock price of the latter is up 14 times over the last … Continued

The U.S. President imposes tariffs to shrink the trade deficit and encourage Americans to buy domestic products. The outcome? The U.S. trade deficit for goods surged to a record $153 billion in January 2025. Surprised? Not really—U.S. buyers are rushing to import foreign goods before the tariffs take effect. The likely next steps: a slowdown … Continued