Category: Daily Instagraph

We initiated in March a position in Dassault Aviation. The French aerospace group currently enjoys a record backlog of close to 8 years in sales providing the company good visibility on future sales with record new export orders on its Rafale fighter. Alone, its 26.5% stake in the defence electronics and electronics group Thales is … Continued

The copper price has been rebounding 11.4% since mid-October last year. This is a good sign as copper is often considered as Dr Copper taking the temperature of the global economy. If demand is strong and prices increase, global manufacturing activity is picking up as demand for industrial commodities increases with more copper needed for … Continued

Is the chocolate Easter bunny under threat? Major African cocoa plants in Ivory Coast and Ghana stopped or cut processing because they cannot afford any longer to buy beans. Cocoa future prices are up 170% over one year. The weather is the culprit there have been three years of poor harvests, with now a fourth … Continued

While yesterday’s 4% CPI print for February in the US was slightly above consensus and shows some stickiness in inflation numbers, the picture is different in Europe. ECB Governing Council member Francois Villeroy de Galhau is quoted in an article for Le Figaro over last weekend. “Since our Governing Council meeting last week, there’s a … Continued

MSCI World Value currently trades at 13.5 times trailing earnings. This PER is below the 50 year average and less than half the multiple of MSCI World Growth. This is undeniably a cheap valuation. At 29.1 times trailing earnings, it is also a fact that valuation of growth stocks looks stretched compared to its history. … Continued

Only 24% of the members of the S&P 500 have outperformed their benchmark over the last 12 months. The last time such a situation arrived was in 1999, just before the Internet bubble burst. Combined to the fact that the US market is now extremely concentrated on a few mega-techs, it is more and more … Continued

The consensus view amongst economists is that Germany will hardly be able to grow its economy in 2024. At the same time, the view is getting more and more positive on the US. Europe overall, and Germany in particular, has a long list of reasons why the Old Continent underperforms going from the geopolitical situation, … Continued

Vacancy rates for offices are reaching new highs in the US as 1/5 of the available space is now empty. While the emergence of home office since Covid has certainly an impact, we are alarmed this comes at a moment where the US economy remains relatively strong. It is apparent the ultralow interest rates with … Continued

Thomas Callum from Top-down Charts shows in the graph below global oil demand. Not only has demand fully recovered from the fall during the Covid pandemic, but it is also reaching new all-time highs. Unfortunately, it appears the world remains hooked on oil while humanity desperately attempts to move away from fossil fuel. On the … Continued

Here is a sector view of the US equity market in terms of valuation. All sectors in the S&P 500, from real estate to materials, trade currently at a discount to their 10 years average based on the most common valuation measures. There is only one notable exception and that is information technology trading 1.7 … Continued