Category: DAILY INSTAGRAPH

In July 2024, a remarkable event unfolded in stock market history: the combined market capitalization of the top 10 stocks in the S&P 500 briefly surpassed that of the remaining 490. However, this dominance was disrupted when the unwinding of the yen carry trade primarily impacted Big Tech companies. Since then, the top 10 stocks … Continued

Exor, the Agnelli family’s holding company, is often seen as primarily tied to mass-market automotive through its stake in Stellantis (Fiat and Chrysler). However, its largest asset is Ferrari, a luxury brand that extends beyond the automotive sector. In fact, Exor’s exposure to mass-market automotive through Stellantis represents only 13% of its gross asset value … Continued

Oil extended its rally for the third consecutive day as markets weighed the escalating supply risks in the Middle East. Israel is anticipated to retaliate against Iran following Tehran’s recent missile offensive. Brent crude is nearing $75 a barrel, marking the longest streak of daily gains since August. A large-scale Israeli strike on Iran’s oil … Continued

Today, the “Magnificent 7″—Microsoft, Apple, NVIDIA, Amazon, Alphabet, Meta, and Tesla—account for 31.3% of the total market capitalization of the U.S. stock market. This is a considerable increase compared to the 19% share held by the top 7 tech companies at the height of the dot-com bubble. However, there is a key distinction: today’s tech … Continued

Agricultural commodity prices have more than doubled since the COVID crisis, reaching record highs this year. As David Costa of Crescat Capital aptly notes, rising agricultural prices have historically been a precursor to broader commodity inflation. If this trend continues, inflation could resurge unexpectedly. Despite recent improvements in inflation data and interest rate cuts, investors … Continued

Investors remain sceptical about the political landscape in France under the Barnier government, particularly regarding the sustainability of its public finances. Although France’s net debt-to-GDP ratio (110.8%) is indeed lower than Greece’s (159.8%), it faced a far larger public deficit in 2023 (-5.5% compared to Greece’s -1.6%). In a remarkable development, the yield on Greece’s … Continued

Since 2009, the US equity market has outperformed its European counterpart by nearly 300%, shaping the perspective of a whole generation of younger portfolio managers who have only known European stocks as persistent underperformers. There are valid reasons for the US to lead, as we’ve discussed many times before. Today, the US equity market’s dominance … Continued

This is the latest back-to-school valuation update. From our perspective, there is little change compared to 12 months ago. The US, led by its megatech giants, is trading at 21.4 times its 12-month forward earnings, significantly higher than its 20-year average and placing it in the top 10% of valuations over the past two decades. … Continued

Germany has de facto lost its status as leading industrial power: industrial production in real terms is now 26% below the long term trend. Overreliance on cheap Russian gas, a premature shift to green energy with the exit from nuclear, relocation of industrial production to Eastern Europe, overreliance on Chinese exports, lack of innovation, excessive … Continued

Europe faces a growing competitiveness problem, lagging behind the United States and China economically. Structural challenges such as over-regulation, a lack of innovation and entrepreneurship, high taxes, and fragmented national political agendas are causing European companies to fall even further behind in terms of profitability. For example, Germany’s automotive industry is in a state of … Continued