Hello Readers,
As promised, we’re bringing you this week’s Fireside Charts with a fresh new look! While you’re here, we invite you to explore our newly updated website.
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Thanks for reading,
Denis Rezendes, Portfolio Manager
Fireside Charts
Europe is in the spotlight after a strong start to the year for European equities. So far, the strong performance has been mainly driven by sentiment and currency. Chinese equities are also off to a strong start, as investors hope that 2025 is the year the Chinese economy turns around. Apparently, there’s not much going on in the oil market. International exposure. Small caps. Excess returns.
1. One week doesn’t make a trend
2. Perhaps expectations for Eurozone economic growth can only go up from here:
3. Recent weakness in the U.S. Dollar has contributed to the strong performance of international assets:
4. The sluggish Chinese economy has been a drag on global growth for years:
5. Historically, the government has turned to export markets to spur growth but that may be difficult if tariffs continue to increase:
6. Although it may be a positive in the long-term if the government turns inward and spurs Chinese consumers:
7. Recent volatility, or lack thereof, has been about as low as it gets in crude oil:
8. The price of oil has hovered around $70 for the past year and a half:
9. Value stocks have less revenue exposure to international markets:
10. Small caps fell short of a new high following the election and they’re down over 10% since:
11. The outperformance of the largest stocks, over the past decade, has been extremely anomalous compared to history:
