The roundtrip

It’s been a full roundtrip for US large-cap equities this year.

As the graph shows, the rebound of US equities is more broad-based. Even when excluding the so-called Magnificent Seven, US large caps are back at new highs.

But let’s not forget the bigger picture: despite the rebound, US equities still lag global markets by nearly 10% year-to-date. One reason? The USD.

Another reason is political. For all the (geo)political noise surrounding the Trump administration — from trade posturing to legal drama — uncertainty remains a drag. Confidence in the USD, the US finances and US institutions is being tested, and global investors are taking notice.

At ECP, we stay anchored. We don’t chase momentum or react to the latest tweet. We invest in companies, not countries or narratives. Whether in the US or Europe, our focus remains: identifying undervalued earning power backed by real fundamentals.