Depressed MAGA

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 are unravelling at warp speed: MicroStrategy has plunged 56% from its 52-week high, Palantir 33%, and Bitcoin 24%. Even the Magnificent Seven aren’t immune—Tesla is down 43% from its peak, NVIDIA 22%, Microsoft 16%, and Amazon 14%.

At ECP, this reaffirms our conviction that valuations matter. We remain cautious and disciplined, prioritizing fundamentals as we build our portfolios of quality companies at defendable valuations.