Category: Daily Instagraph

Gold has reclaimed its status as a preferred reserve currency among global central banks, surpassing the euro in international reserves. This resurgence is driven by several factors including increased central bank purchases, geopolitical considerations, waning confidence in the euro, a global move away from the US dollar, and a rising gold price. Given these dynamics, … Continued

Since the end of the Bretton Woods system and the abolition of the gold standard, equities, bonds, and gold have all outperformed inflation. Recently, however, gold has made a significant comeback compared to bonds over the past four years. This has led to the perception that investors would have been better off holding gold instead … Continued

At business school, we learned—and universally agree—that stock splits do not impact a company’s fundamental value. However, the stock prices of companies that undergo splits (such as NVIDIA, which announced a split yesterday) often outperform in the subsequent months. The reasons for this are speculative. Firstly, management typically decides to split the stock following strong … Continued

NVIDIA’s CEO stated yesterday that “the next industrial revolution has begun,” and NVIDIA stands to gain the most. The company’s fiscal Q1 revenue hit $28 billion, beating expectations and driving a 4% after-hours stock price jump, on top of a 92% rise this year. Analysts now forecast 35.8% annual earnings growth for the next five … Continued

An interest rate cut by the ECB in June is becoming increasingly likely. Yesterday, Christine Lagarde remarked to the press, “I’m really confident that we have inflation under control,” adding, “The forecast that we have for next year and the year after that is really getting very, very close to target, if not at target. … Continued

Consider the chart below and imagine reviewing it five years from now. Wouldn’t it appear evident that this was an opportune moment to diversify your portfolio and reduce the concentration of megacap technology stocks, especially given their valuations at the time? We firmly believe that defensive stocks and cyclicals are undervalued in the current stock … Continued

Investors in bonds face two primary risks: duration risk and credit risk. Duration risk measures a bond’s sensitivity to interest rate changes, with higher durations indicating greater sensitivity. For a 30-year U.S. Treasury bond, credit risk is minimal due to the relatively strong creditworthiness of the U.S. government. On June 26, 2020, the 30-year U.S. … Continued

The Buffett Indicator, a simple ratio comparing a country’s total stock market capitalization to its GDP, is frequently referenced by Warren Buffett as a measure of overall market valuation. Presently, this indicator stands at an all-time high compared to its historical trends over the past 50 years, diverging significantly from global norms. This discrepancy can … Continued

Since 1990, the US Debt-to-GDP ratio has surged from 55.6% to 126.9%, a staggering increase. In stark contrast, Germany’s public debt level began at 59.3% but rose modestly to 64% over the same period. These figures prompt two crucial questions: Is the US economy overly reliant on leverage, akin to being on steroids? And has … Continued

Looking for reasons of why the copper price is up 30% over the last 6 months and copper mining stocks, like our portfolio holding Boliden AB, are up 26.2% over the period ? Our take: 1/ Manufacturing PMIs in expansion territory above 50 show that industrial production is recovering 2/ Not only the energy transition … Continued