Market & Economic Perspectives | Analysis & Insights
Prosperity Has a Foundation – and It's Beginning to Crumble
As democracy, rule of law, and open markets come under pressure—even in long-trusted economies like the U.S.—investors must rethink geographic diversification. Institutional resilience, not short-term data, is the true driver of sustainable returns. In a world of rising political risk, long-term capital should flow to countries where the foundational pillars of prosperity remain strong and intact.
Trump Is Nero While Washington Burns
French Senator Claude Malhuret delivers a scathing warning about America’s retreat from global leadership, likening Trump to Nero as the pillars of democracy burn. His viral speech urges Europeans to wake up, rearm morally and militarily, and stand firm for Ukraine and democratic values. In his view, Europe's future now depends on its own resolve—not Washington’s.
U.S. to Implement New Tariffs on Mexico, Canada, and China: A Risky Strategy?
The U.S. will impose new tariffs on Mexico, Canada, and China—raising serious economic and strategic concerns. Despite justifications tied to trade deficits, migration, and the fentanyl crisis, critics warn of supply chain disruptions, rising consumer costs, and diplomatic fallout. La Côte Invest views the move as economically risky, potentially undermining key trade relationships and further destabilizing global market confidence.
ESG - Ever So Gone
Environmental, Social, and Governance (ESG) investing has seen a sharp decline in the US, impacted by its entanglement with political and cultural conflicts. The initial promise of ESG to foster a clean, sustainable shift in capitalism has largely been abandoned. The term “ESG” itself has been politicized, particularly by right-wing politicians, with Larry Fink of BlackRock stating it has been “weaponized” and should no longer be used. BlackRock has become a target for conservative critics, even labeled in a recent book alongside the Boy Scouts and the Chinese Communist Party as a “decadent” institution. Many supporters of ESG are also disillusioned, seeing it as more of a marketing tactic than a meaningful investment strategy. Several firms, including WisdomTree and Invesco, have faced fines for “greenwashing” their products. Additionally, BlackRock faces allegations in France that some of its “sustainable” funds are still investing in fossil fuels.
Why Active Funds Fail and How La Côte Invest Ensures Success
Over 80% of active funds have underperformed their benchmarks over the past decade, according to SPIVA data. At La Côte Invest, we focus on what truly drives long-term success: a sound, cost-efficient strategy tailored to each client. By relying primarily on passive instruments and only taking active positions when conviction is high, we ensure consistency, transparency, and performance.