Category: Daily Instagraph

Value remains unloved: all the outflows out of so-called smart-beta ETFs in the US in May were explained again by the Value ETFs. The argumentation brought forward is that the value style will underperform despite the higher interest rates as the US economy is slowing. Also the exposure of these indices to financials and energy … Continued

You thought European equities overall were cheap. Well, UK equities are even cheaper as they trade at their biggest discount towards European equities in two decades in terms of PER ratio. Compared to the US, the UK discount is currently more than 40% with almost all sectors ( except tech hardware and telco ) trading … Continued

The Norwegian government reached a deal yesterday with minority parties to secure a parliamentary majority for lowering to 25% (from the 35% initially planned ) a proposed tax on salmon farmers. This removes an uncertainty that has been hanging over salmon producers over the last months. Their stocks surged with our holding Leroy Seafood increasing … Continued

Worried by the discussion about the debt ceiling … own gold. The argument brought forward by several strategist on Wall Street goes as follows: the political drama about the debt ceiling will ultimately result again into more debt as this debt is required to finance an US budget that was voted. Higher debt levels inevitably … Continued

The Euro has gained some 13% versus the USD since its September low. According to Goldman Sachs, a 10% rise in the euro shaves 2% to 3% off earnings-per-share growth for European companies. The more global sectors like telco, healthcare and media are particularly exposed as they generate roughly 40% of their sales in North … Continued

As we are at the end of the Q1 result season, it becomes visible what companies in the S&P 500 are currently growing their earnings. The clear sector winners are probably the least appreciated: companies in the energy sector. Energy companies have indeed been growing their earnings by 155% over the last 12 months while … Continued

According to the April Fund Manager Survey from BofA, the “long big tech” trade is by far the most crowded trade amongst institutional fund managers. This happens in a context where the stock market is currently driven by only a few winners ( FAANGS) and where higher interest rates should challenge the high valuations of … Continued

It is not surprising that there is a strong correlation between the availability of credit to the corporate world and the ability of companies to grow their earnings. In the US, the regional banking crisis and the higher rates have let lending officers to tighten their standards before accepting to give out new loans. This … Continued

The market capitalization of Apple has reached a remarkable 2.7 trillion USD. This dwarfs every single continental European stock market as it is for example 10% more than the value of the whole CAC 40 and 80% more than the one of the German Dax. It is now higher than the combined value of the … Continued

Today’s graph is a stark reminder that hyped IPO’s of tech unicorns do most often result into bad stock market investments. At ECP, we believe that investment banks are indeed doing an excellent and well-paid job in pricing and placing the IPO at least at fair value. It appears therefore difficult for us as investors … Continued