Category: Daily Instagraph

Since Lecornu’s appointment last month, France’s credit rating has been downgraded by two agencies amid concerns that political paralysis will block any fiscal repair. Moody’s will update its assessment on October 24. Recent indicators suggest that uncertainty is already weighing on the broader economy as households and companies postpone spending and investment. Politically, Macron is … Continued

The market capitalization of NVIDIA now exceeds that of all the world’s major pharmaceutical companies combined. If we think this through, equity investors should ideally allocate more capital to innovative pharma companies — to ensure the continued development of new drugs and the high-quality production of these treatments. Pharma companies are rewarded for their R&D … Continued

Amidst the (geo)political noise, much has been said this year about the “end of US exceptionalism” and rising appetite for equities elsewhere, notably Europe. Yet reality tells a different story. 2025 so far has been a two-step: early-year diversification away from the US — which benefited Europe to some extent — followed by a strong … Continued

Pharma stocks had yesterday one of their strongest days in years. The S&P 500 Pharma Index surged over 5% yesterday, pushing the sector back into positive territory for 2025 (see chart). Tariffs that first looked threatening ended up favouring companies with strong local production, Pfizer struck a pragmatic deal with Washington, and the new TrumpRx … Continued

Mr. Market has decided that LVMH now pays a lower yield on a 10-year bond than the French government on bonds of the same maturity in 2033. In other words, investors today perceive less credit risk in the world’s leading luxury group than in the French Republic itself. At first sight, this feels counterintuitive. After … Continued

2025 has so far been marked by geopolitical and trade tension, with tariff decisions from the US administration threatening to reverse decades of globalization and disrupt global trade. Nevertheless, financial markets have shown strong resilience, quickly recovering the losses seen around “Liberation Day”, April 2, 2025, when the US unveiled sweeping tariff measures. A key … Continued

Market concentration in the S&P 500 has reached extreme levels. Today, the top 10 companies account for around 35–40% of the index — close to record highs in modern history. While this is far below the “broad diversification” that many investors expect from an index fund, it means performance is increasingly driven by a handful … Continued

The combined market capitalization of all German listed companies now stands at 3 trillion USD — almost a third below Nvidia’s 4.3 trillion USD. At ECP, we believe in US exceptionalism, the AI revolution, and Nvidia’s unique positioning as its prime beneficiary. Trading at 31x forward earnings, with consensus expectations of 39% annual EPS growth … Continued

In terms of price-to-earnings, European equities today trade at a slight discount compared to where they stood 10 years ago. Importantly, in Europe valuations are not driven by a handful of mega-caps but are more evenly distributed across the market. The US picture looks radically different. Not only do American equities trade at a significant … Continued

Over the past 20 years, the global weight of the US economy has declined from 19% to 15% of world GDP. Yet, during the same period, the weight of US equities in global indices has surged from 51% to 67%. European Union’s share of world GDP also fell, from 21% to 14%, now slightly below … Continued