Market failure means the market fails to maximize societal welfare due to the inefficient allocation of goods and services. This can result from insufficient or a complete lack of information. Many argue that climate change is one of the most significant representations of market failure, driven by the misalignment of market incentives with societal and environmental costs. But ...
Fiery Flash: Marvell Technology
Marvell Technology's stock has shown remarkable momentum in 2024. Particularly over the past week, the company has demonstrated significant progress, making it a noteworthy player in our Fiery Flash segment. Since the beginning of the year, Marvell's stock price has surged by an impressive 88%, with an additional 26% increase just last week. Before exploring the catalysts behin ...
#MacroFriday: Sentiment among investors in US stocks is extremely high
A record-high 56.4% of consumers expect stock prices to increase in the year ahead, while only 21.3% anticipate a decline. Investors have reasons to believe the positive momentum in US equity markets could continue. The pro-business and investor-friendly President Trump inherits a Goldilocks economy characterized by solid economic growth, inflation moving toward its target, and ...
Climate Funds in a Changing Political Landscape
The recent election results in the United States, which led to a Republican majority and the re-election of Donald Trump, have caused significant shifts in markets, particularly in sectors tied to sustainability and the energy transition. Not least because Trump has been quite vocal and negative in his stance towards renewables. Investors in climate funds faced mixed signals: a ...
Bridging the Climate Adaptation Gap: A Shortfall in Climate Finance
At the recent COP summit in Azerbaijan, world leaders pledged $300 billion for climate finance in developing countries, a figure that falls short of the estimated $1.3 trillion needed annually for climate mitigation and adaptation, according to economists. Additionally, this $300 billion pledge could lose about 20% of its value by 2035 due to inflation – a critical oversight, a ...
#MacroFriday: Trump sets the scene for his presidency
No, I had not planned to write about Trump this week, but his remarks on Monday left me with little choice. Even before taking office, he’s already pointing fingers at the United States’ key external suppliers of goods. On Monday, Trump announced plans to impose a 25% tariff on all imports from Mexico and Canada, along with an additional 10% tariff on Chinese products, effect ...
Report from Research Trip to India
India is a country of sharp contrasts. It has been over 30 years since we first visited the country, and with every visit, India continues to surprise us. Econopolis recently traveled to Mumbai and its surroundings to assess the situation on the ground. We spoke with around thirty companies, consultants, investors, policymakers, and local analysts, and we now take stock of the ...
Fiery Flash: Eastman Kodak
Old glories don’t fade away easily, but they do lose their shine. Eastman Kodak is a perfect example of such a faded glory. Yet, in 2024, and particularly last week, the company proved itself a strong contender for our Fiery Flash segment. Since the start of the year, the company’s stock price has risen by 83%, with an additional 30% increase just last week. Before diving into ...
#MacroFriday: Sovereign Debt Sustainability Worries ECB
The aim of the ECB’s biannual Financial Stability Review (FSR) is to raise awareness of systemic risks to financial stability in the Euro Area, with the ultimate goal of preserving financial stability. In its most recent report, the ECB expressed concerns about concentrated equity markets and the combination of weak economic growth prospects and fragile fiscal fundamentals. Fis ...
I don’t chuckle. I have respect for the dollar!
“Greed clarifies, cuts through, and captures the essence of the evolutionary spirit.” Gordon Gekko, Wall Street (1987) As we approach the end of one of the best years ever for the S&P 500, both institutional and retail investors are feeling giddy. While institutional investors have directed record amounts of capital to US large-cap stocks, retail investors have continued to ...