https://www.alainguillot.com/the-u-s-vs-the-european-stock-market/ The different performance between the European and U.S. stock market. Over the past 12 months, the U.S. stock market, as represented by the S&P 500, has increased more than 30%, demonstrating great economic momentum and investor confidence. On the other hand, the European market has lagged significantly, with the iShares STOXX Europe 600 ETF (IEUR) seeing a much more modest increase of about 7%. This disparity highlights underlying differences in business environments and economic policies on both sides of the Atlantic. One of the critical factors contributing to this performance gap is the regulatory and taxation landscape in Europe, particularly the U.K. Business creation in the U.K. has recently fallen to its lowest point in 13 years, a signal that entrepreneurs and innovators are facing significant hurdles. High corporate taxes (25%), stringent regulations (labor laws, environmental laws), and economic uncertainty have stifled new ventures and investment, further slowing growth. In contrast, the U.S. has maintained its appeal as a more entrepreneur-friendly arena. Lower taxes (21%), flexible regulations, and a strong support ecosystem for startups have encouraged innovation and business formation. This welcoming climate draws not only domestic entrepreneurs but also international innovators seeking a more dynamic environment for their ventures. People come from all over the world to start businesses in the U.S., and investors come from all over the world to invest in the U.S.) The divergence in business growth is reflective of broader macroeconomic trends. While Europe grapples with economic sluggishness, compounded by post-Brexit complexities and fiscal challenges, the U.S. benefits from a strong market culture that prizes risk-taking and supports rapid scalability. Investors and economic analysts continue to take note of these differences as they project future market behavior and potential investment strategies. Without significant policy shifts in Europe to support startups and reduce tax burdens, the continent may continue to see slow growth compared to the U.S., where the business landscape remains conducive to innovation and expansion.

https://www.alainguillot.com/stock-market-success-enjoying-the-gains-and-preparing-for-the-unexpected/

Generally, when my stocks are going up, I consider myself a genius. However, when the market is going down, I often blame the government, the market itself, or the latest geopolitical drama.

Over the past 12 months, my portfolio has increased by over 30%, and over the last five years, it has grown by about 90%.

Can the stock market continue going up? Will there be a downturn soon? How do I balance the enjoyment of the present gains with the little voice that says, “What if…”

While drinking a glass of champagne and dining at my favorite vegan restaurant, I’m fully aware that the celebration could end at any moment. There could be a negative year, or perhaps several negative years. Yet, despite this awareness, I struggle to take profits off the table. Instead, I am actively seeking alternative sources of income so that, if my luck in the stock market runs out, I’ll still be able to pay the rent.

I think it’s normal to hope for the best possible outcome.

Companies should strive to be as profitable as possible.

Employees should aim for the best possible compensation.

Families should seek to live fulfilling lives, but within their means.

We all want the best, but we should also have a plan to prepare for the worst.

In my case, I accept that having a bad year is part of the journey. If that happens, I hope to face it without panicking. Don’t be sad because the party ended; be happy because it happened.

I want to end with one question: What personal rainy day fund are you building? It’s not just about money. It could be about emotional resilience. Are you building a network of supportive friends to hold your hand in case of a downfall? Are you developing new skills, either to stimulate your brain or as an alternative source of income? Think about what your safety net looks like. What are you doing today to prepare for tomorrow?

https://www.alainguillot.com/trends-and-income-inequality/

While income inequality is increasing within industrialized countries, it is actually decreasing on a global scale due to globalization. This is because globalization has created opportunities for economic advancement in developing nations, leading to millions of people being lifted out of poverty. However, the increased wealth of a select few individuals in developed countries, like Elon Musk and Jeff Bezos, often leads to criticisms of unfairness and calls for wealth redistribution. However, countries where wealth redistribution policies have led to disastrous economic consequences, such as Uganda, Zimbabwe, and France. Instead of focusing on income redistribution, we should focus on creating an environment that fosters economic growth and opportunity, such as simplifying business licensing, promoting online education, and expanding affordable public transportation. Promoting economic freedom and opportunity is the best way to reduce poverty and create a more equitable society.