When the bubble bursts

On 10 March 2000, the Nasdaq peaked at 5048.6 points – a moment that no one recognised as such at the time, but which, in retrospect, marked the beginning of a freefall that would wipe out 77 percent of the market’s value. Now, 25 years later, inevitable parallels arise between the dotcom hype and the current AI revolution. But are these comparisons justified?

Chart of the week: stagflation stress

The markets were already on edge, and there seems to be little sign of that changing any time soon. Geopolitical tensions have reached fever pitch, culminating in an outright shouting match in the Oval Office in Washington. This development could have significant consequences, as Trump currently appears unwilling to provide aid to Ukraine.

"Make Russia Great Again"

For more than eighty years, Europe has been protected under the security umbrella of the United States. Now, as negotiations take place regarding the war in Europe without the involvement of Ukraine or any other European nations, Europe is forced to adopt an independent stance both politically and militarily.

‘Animal spirits’

The Bund in Shanghai is a one-and-a-half-kilometre waterfront promenade along the Yellow River. With its luxury restaurants and Italian racing cars, the view of Pudong from Bar Rouge on the Bund resembles the capitalist pinnacle of the communist utopia.

The wisdom of the collective

Passive investing can be seen as a disruptive innovation that has also reduced costs for active investors. It has made active investors more engaged, aligning their compensation more closely with their added value. Meanwhile, passive investors benefit as free riders from the extensive work undertaken by active investors.