Short legs

Oil prices dropped sharply following Trump’s surprise ceasefire announcement on Truth Social after Iran’s limited strike on a Qatari air base. While it’s too early to say the conflict is resolved, the message is clear: for now, no side appears to be pushing for further escalation.

Markets responded swiftly — oil slumped, equities rallied. Once again, this reminds us that geopolitical market moves often have short legs. Trading on such events is tempting, but rarely rewarding.

At ECP, we stay focused on long-term fundamentals. We invest in companies with undervalued earning power — that’s how we create value, conflict or not.