Skip to content

Category: Uncategorized

Against the odds

By leon

Achieving annual sales growth of more than 10% is challenging, but sustaining that level of growth consistently over a decade is nearly impossible. The graph below illustrates this point with companies in the S&P 500—where only one managed to maintain such high growth over 10 years. For investors, the odds of randomly selecting that company … Continued

Breakfast in good company

By pascal

✨ Reflecting on an insightful morning at Brasserie du Cercle! ✨ Yesterday, we had the pleasure of hosting our “Wealth & Breakfast” event, bringing together investment professionals and market enthusiasts to discuss the key challenges and opportunities shaping 2025. 🔍 Our discussion covered: 📈 The dominance of tech stocks in the markets 🌍 The impact … Continued

Événement au Golf grand-ducal avec Bruno Venanzi et Léon Kirch le 10 décembre 2024

By pascal

✨ Retour sur notre événement ECP du 10 décembre au golf grand-ducal de Luxembourg: une soirée d’échanges et d’inspiration ! Nous avons eu le plaisir de rassembler une communauté d’experts, d’investisseurs et de partenaires autour d’une soirée riche en partages et en découvertes. 🌟 Les temps forts de cet événement : Une intervention inspirante de … Continued

Global monetary easing

By root

2024 will go down in monetary history as a year of financial easing with central banks across the globe reducing their interest rates. While the Fed has taken the lead, many countries have followed ( with the noticeable exception of Japan that raised rates ). Now China has also introduced and signalled monetary and fiscal … Continued

Valuation update

By root

As of the latest summer update, the S&P 500 is trading at 21.2 times forward 12-month earnings, which is 1.1 standard deviations above its 10-year median. Among the sectors, Information Technology stands out as the most expensive, with the sector trading at 9.3 times sales. On the other end of the spectrum, the Energy, Financials … Continued

Dire needs – lousy returns

By root

The collapse of the main bridge crossing Baltimore’s outer harbour after a large container ship had crashed into it showed that infrastructure matters and needs investment. As Bloomberg columnist John Authers rightly pointed out “Listed infrastructure, despite the painfully great demand for it, is evidently not delivering returns for shareholders” and “Getting big infrastructure built … Continued

Opportunity knocks for gold mining stocks

By root

Interesting chart brought to my attention by my colleague Boris Cukon, co-manager with Vincent Vandamme of the Isatis global natural resources flexible Fund specialized on commodities and managed by ECP. The ratio of the market value of gold stocks to gold is currently nearing a record low last seen in 1980 and 2015. If history … Continued

Gas prices appear too low

By root

European natural gas prices are back to levels last seen before the war in Ukraine. This is partly due to the relatively mild winter we have seen. More importantly, Europe has made attempts to reduce its energy dependence towards Russia by shifting to LNG and other alternatives and boosting its transport and storage infrastructure. The … Continued

Defence versus AI

By root

Defence stocks are on the rise, also in Europe. Rheinmetall AG stock increased 376% since December 2021, Dassault Systèmes +244%, Leonardo +200%, BAE Systems +126% and SAAB +90%. These returns are comparable to NVDIA (+146%) over the same period. Defence spending is increasing with the geopolitical threats Europe is facing and a needed catch-up in … Continued