Many have concluded that the US is the promised land while Europe is a wasteland. While there are many reasons to be impressed by the US, investors should not disregard the Old Continent, Europe.

A more fragmented and regional world challenges previous global investment paradigms – and increases the need for active and forward-looking capital allocation.

Some investors have written China off. Some even consider the country uninvestable. However, many Chinese companies now lead their global sectors with promising prospects.

As passive investment continues to rise, market concentration and high valuations are expected to increase, leading to potential risks when trends reverse.

Equity markets globally reacted abruptly on Monday, 27 January, due to the introduction of the DeepSeek language model.

This paper discusses how passive investment strategies have driven the market narrowness and increased equity markets’ price inelasticity.

Magnificent Seven stocks dominated the stock markets in 2024, reaching a market value equivalent to 16% of the global economy.

CEO and Portfolio Manager Bo Knudsen reflects on the investment year 2024 and assesses the outlook for the coming year.

While some companies are favourably positioned to capture long-term value from a data-driven business model, for the majority, data will be a prerequisite to remain competitive and not necessarily a long-term driver of shareholder value.

The dominance of today’s largest companies has led to extreme market concentration, but this is not historically unique. CEO and Portfolio Manager Bo Knudsen takes a deep dive into Superscaling in the 2020s and beyond.