European Buzz
America used to run on Dunkin’. Now it’s TACO. That’s an acronym for “Trump Always Chickens Out,” a tongue-in-cheek theory describing how markets plunge when tariff threats hit the headlines, then rally once the White House backs off. We've seen it again and again since the first tariff threat: sharp drops on trade war noise, followed by sudden rebounds when tariffs get paused. It’s a masterclass in how perception — not fundamentals — more often than not, is driving market volatility.
Looking past all the noise, Q1 earnings told a very different story. Nvidia, Salesforce, Macy’s, Dick’s Sporting Goods, and Abercrombie & Fitch all delivered strong results despite strong headwinds like tariffs, soft consumer demand, or geopolitical friction. And it wasn’t just the giants stepping up. A handful of small-cap names quietly delivered knockout quarters of their own. D-Wave Systems posted a 509% revenue surge thanks to a landmark quantum system sale. Vivakor more than doubled its top line after a strategic midstream acquisition. And Caledonia Mining rode strong gold prices and higher output to a sixfold increase in net income. These companies didn’t rely on hype—they executed. In a market obsessed with mega-cap momentum, it’s a reminder that smart strategy, strong fundamentals, and timing still matter no matter your size.
The market may be swinging on tweets, but businesses are running their race. Investing isn’t about sprints. It’s about pacing, patience, and progress. Slow and steady wins the race, and sometimes the best move, is no move whatsoever. Long-term investors know it’s not about mile 3 or 13, it’s about finishing strong. Companies that can demonstrate operational strength and strategic execution still matter.
While we’re busy munching on TACOs, bigger structural concerns like ballooning US debt are closing in fast. That’s where diversification comes into play. Yes, the US has led global markets for 15 years, but no winning streak can last forever.
Europe, in particular, is looking resilient, undervalued, and under-owned compared to US markets. It’s time investors take a hard look at international allocation not because it’s trending, but because it’s grounded in strong fundamentals. When US markets start to look stretched, diversifying abroad isn’t just a hedge but a new competitive advantage. Valuations in many international markets, especially in Europe, remain attractive relative to the US and earnings growth is fast catching up. Thoughtful global exposure can also reduce concentration risk, enhancing long-term returns, and positioning portfolios to benefit from multiple engines of growth not just one.
Forget Dunkin’ (and hold the TACOs). This market calls for something that actually goes the distance like Costa, or an Italian classic like Segafredo Zanetti. Europe’s not just brewing buzz, it’s the next big pour.
