Depressed

According to the widely followed BofA Global Fund Manager Survey, institutional investor sentiment is currently at a low point — at least professionally. Their composite gauge, which blends growth expectations, cash levels, and equity allocations, just posted its fifth-lowest reading in the past 25 years.

The good news? Historically, when Mr. Market feels this gloomy, it’s often been a good time to invest — and equities have tended to rally afterward.

The bad news? Today’s tariff-induced volatility could still evolve into something more serious — namely, a hard landing for the U.S. economy. In our view, it all depends on whether the current U.S. administration can restore trust and bring its experimental economic policies to a close.

At ECP, we continue to stay the course, invested in a collection of high-quality businesses trading at attractive valuations. And with the Q1 earnings season now underway, we look forward to seeing how our companies are performing.