Category: Daily Instagraph

Concentration risk is a growing concern, as over 70% of the major mutual funds monitored by Bank of America hold significant stakes in six of the “Magnificent 7” stocks, excluding Tesla. Notably, positions in Meta, Apple, NVIDIA, Google, and Amazon have even increased since the start of the year. The potential danger arises if portfolio … Continued

In the U.S. stock market, sectors most sensitive to falling interest rates are currently underrepresented by investors. This under-ownership is assessed by comparing each sector’s market capitalization relative to the overall market cap of the S&P 500 and its average sector weight throughout the 20th century. As interest rates decline, under-owned sectors such as materials, … Continued

With the volatility seen in stock markets at the beginning of August, the publication of Q2 earnings has somewhat moved in the background for investors. With most of the result season now behind us, the good news is that US companies have shown very solid results in Q2. 56% of S&P 500 firms beat consensus … Continued

Over the last 30 years, MSCI China did not show ANY return in USD terms. At the same time, Chinese stocks showed 6 intra-year corrections of more than 40% and average drawdowns of 30.4%. With the benefit of hindsight, it therefore made little sense to invest in Chinese stocks despite the strong narrative of the … Continued

Donald Trump, during his US presidential campaign, argued that the President should have a significant role in influencing the decisions of the Federal Reserve. “I believe the President should have a say, absolutely. I feel very strongly about that,” he stated. This should raise serious concerns among financial investors, as the independence of central banks … Continued

Gold prices in USD have surged, climbing 62% over the past five years, 29% in the past year, and 19% just this year. The resurgence in demand for gold is driven by factors such as rising interest rates, inflation, and geopolitical uncertainties. Recent financial market volatility has highlighted that cryptocurrencies may lack the same safe-haven … Continued

Following up on yesterday’s comment on gas prices in Europe, we would like to put forward Equinor, one investment we hold in our portfolios. Equinor is Norway’s state-owned energy company. As one of the largest gas exporters in Europe, Equinor is well-positioned to capitalize on this growing demand. Equinor’s mature infrastructure, low-emission production, and extensive … Continued

Many European countries remain heavily dependent on Russian gas. Annually, Russia ships around 15 billion cubic meters of gas to Europe via Ukraine, primarily to Slovakia and Austria, where it remains a dominant supplier. In Austria, Russian gas has accounted for more than 80% of consumption for the past five months. Europe also imports Russian … Continued

According to the late value investor Charlie Munger, “There are only three ways a smart person can go broke: ladies, liquor, and leverage.” This principle applies to investors engaged in the yen carry trade as well. Recent days have shown that the substantial amounts borrowed in yen and invested in risky assets denominated in other … Continued

The VIX index, which measures the coming volatility of the stock market implied by call and put options on the S&P 500 for the coming month, surged to 65 yesterday. This marks the largest increase since the index was created in the late 1980s, comparable to spikes seen during the COVID-19 pandemic and the Lehman … Continued