Category: Daily Instagraph

The sea of red in equity markets shows no signs of abating. The S&P 500 has now declined 8.6% since February 19, 2025, while the Mag-7 stocks have plunged 20.5% since December 17, 2024. Just yesterday, the S&P 500 wiped out $1.4 trillion in market capitalization. A mix of high valuations, geopolitical tensions, and economic … Continued

The Magnificent 7 stocks, which were the biggest drivers of the S&P 500’s performance last year, have now become its biggest drag. As of March 6th, the S&P 500 had declined by 2.4% year-to-date, while Apple, Amazon, Google, Meta, Microsoft, NVIDIA, and Tesla collectively lost 9.9% of their market capitalization. This implies that the rest … Continued

Benjamin Graham famously described market behavior with his well-known analogy: “In the short run, the market is a voting machine, but in the long run, it is a weighing machine.” Today, uncertainty—driven by the bold, disruptive, and at times erratic decisions of the Trump administration—has ended a period of calm in financial markets, placing significant … Continued

Three months ago, Germany’s coalition collapsed under economic turmoil. Now, a seismic shift: a €900 billion borrowing plan, the biggest fiscal pivot since reunification. The constitution could be amended within days to loosen the “Schuldenbremse.”. Markets reacted swiftly—Bund yields surged 30bps yesterday, their largest move since 1990. A month ago, the 10-year Bund yield stood … Continued

The geopolitical and economic uncertainty induced by the Trump government is taking its toll on financial markets. The sea of red we saw in equities worldwide is a painful reminder that equities are not going up in a straight line. At ECP, we stick right now to our course as our the case for equities … Continued

European defence stocks were again on fire yesterday after the Selensky/Trump clash over the weekend. As per Monday market close, share prices of the main defence companies are up this year between a stunning 40% for BAE Systems and 86% for Rheinmetall. The stock price of the latter is up 14 times over the last … Continued

The U.S. President imposes tariffs to shrink the trade deficit and encourage Americans to buy domestic products. The outcome? The U.S. trade deficit for goods surged to a record $153 billion in January 2025. Surprised? Not really—U.S. buyers are rushing to import foreign goods before the tariffs take effect. The likely next steps: a slowdown … Continued

Since Trump’s election, U.S. equities have lagged behind their international counterparts. While we leave politics to the politicians, it’s undeniable that political decisions—such as tariffs, global trade policies —impact the economy. So far in 2025, the S&P 500 has dipped 0.34%, while the MSCI Europe has surged 10.2%. The most speculative trades of the year … Continued

In strong bull markets like the one we have been experiencing, a toxic combination inevitably emerges. Driven by greed, new “innovative” products are designed, blending speculation with leverage. When markets take a downturn, the resulting wealth destruction can be devastating for investors. A clear example: over just three negative trading sessions leading up to the … Continued

A play on the German Mittelstand: the likely coalition between Merz and SPD as junior partner could get Germany out of the economic inertia. This could lead to a more growth-oriented agenda in Germany and address some structural issues in the economy. We believe one way to reflect this renewed hope is investing in Germany’s … Continued