Friday Morning Coffee Nr. 54: The Pain Trade

250419 Friday Morning Coffee

Friday Morning Coffee Nr. 54: The Pain Trade

Here we go again – the words ‘melt-up’ and ‘pain trade’ are coming up again in the financial media. This is no wonder as European markets, as measured by STOXX 600 are up 15.8% ytd as of the close of Wednesday this week. Some large capitalization companies, like SAP, have seen twice the performance of the market overall since the beginning of the year. SAP alone added more than 15 bn EUR in market cap on Wednesday after strong results and an announcement of a shareholding by activist Elliott.