AI Investment Tips, Michael Burry’s Q3 Moves, $CBNA’s Case, Yahoo! Finance Conference Insights, and More
Welcome back to the BBAE Blog, your trusted source for the latest investment insights and analyses from the BBAE team. This week, we’re excited to share some highlights that will keep you informed and ahead of the market. Don’t forget, some of our most valuable insights are available exclusively in the BBAE Pro app—download it now to unlock full access!
- AI Stocks: Here’s How to Invest | Derek Yan of KraneShares
- Michael Burry – Portfolio Update – Q3 2024
- Gator Financial Partners: Chain Bridge Bancorp ($CBNA) Investment Case
- From the Yahoo! Finance 2024 Invest Conference with Love
- News Roundup: Healthy US Stock Market, Gold Bug Chart Crime, Mag7 Bubble vs. Dot.com, DJIA Goofy Index
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AI Stocks: Here’s How to Invest | Derek Yan of KraneShares
James Early, BBAE CIO, discusses the future of AI investing with Derek Yan, manager of the KraneShares AI and Technology ETF (Nasdaq: $AGIX). Derek predicts the emergence of 10,000 AI companies and believes the AI boom is far from over, making now an opportune time to invest. He explains how to differentiate true AI companies from Big Tech firms using AI, highlights smart vs. risky investment strategies, and shares why he expects more winners than losers in the space. While James notes Derek’s optimism aligns with his role, he agrees that publicly traded AI companies are relatively de-risked but points out the scarcity of pure-play AI options in public markets. Watch the full conversation here.
Michael Burry – Portfolio Update – Q3 2024
Michael Burry has just revealed his latest portfolio moves, showcasing a strategic shift towards refinement over major new investments. The legendary investor disclosed three new put option positions, all in Chinese tech giants Alibaba ($BABA), JD.com ($JD), and Baidu ($BIDU), while maintaining significant stakes in these companies. Meanwhile, Burry has substantially increased his holdings in Shift4 Payments ($FOUR) and Molina Healthcare ($MOH), making them his largest unhedged long positions, while reducing or exiting investments like RealReal Inc ($REAL) and Hudson Pacific Properties ($HPP). Read the full article here.
From the Yahoo! Finance 2024 Invest Conference with Love
BBAE CIO James Early shares firsthand observations from his annual pilgrimage to the Yahoo! Finance 2024 Invest conference. Reporting directly from the event, Early captures key insights from industry titans including BlackRock’s CIO Rick Rieder on market technicals, Bank of America CEO Brian Moynihan on Fed independence, and Federal Reserve’s Neel Kashkari on inflation targets. Early provides unique personal observations of the contrasting views on monetary policy, featuring notable discussions from Bridgewater’s Co-CIO on market valuations and Trump’s potential impact on markets. His on-the-ground coverage spans from traditional banking insights to cutting-edge brain-computer interface technology. Read the full article here.
Gator Financial Partners: Chain Bridge Bancorp ($CBNA) Investment Case
Gator Financial Partners spotlights Chain Bridge Bancorp ($CBNA) in their Q3 2024 investor letter as a robust investment choice, leveraging its unique banking services tailored to Republican political campaigns. This specialization enables Chain Bridge to secure zero-cost deposits, providing a solid foundation for consistent high returns. Despite potential risks from the cyclical nature of political funding and a dual-class stock structure that might impact valuation, Gator Financial believes Chain Bridge’s focused customer service and strategic market positioning will drive growth and profitability. With a compelling entry point post-IPO at near book value, Gator Financial sees a significant upside in Chain Bridge’s future performance. Read the full article here.
News Roundup: Healthy US Stock Market, Gold Bug Chart Crime, Mag7 Bubble vs. Dot.com, DJIA Goofy Index
This week’s financial news highlights several key developments:
- Gold vs. Stocks – A Matter of Timing: Despite strong US stock performance, Deutsche Bank data shows gold has actually outperformed US equities over the past 25 years when adjusted for inflation, delivering 6.8% annual returns compared to stocks’ 4.9%.
- Magnificent 7 vs. Dot-com Bubble – A Healthier Picture: While Mag7 stocks now comprise 31.3% of US market cap (vs 19% for top tech stocks in 2000), they show stronger fundamentals with a lower P/E of 23.9x (vs 50x), better profit margins of 28% (vs 16%), and higher cash positions of 4.2% of market cap (vs 1.7%).
- Market Health Indicators Positive: BlackRock analysis reveals current market gains are balanced between earnings growth and multiple expansion, suggesting a healthy rally backed by fundamental growth rather than pure speculation.
- Index Structure Matters: NVIDIA’s recent addition to the Dow Jones Industrial Average highlights the quirks of price-weighted indexing, where despite being the world’s largest company by market cap, it carries only 2% weight in the DJIA due to its stock price structure.
Read the full roundup post here.
Wishing you a great week ahead~
Barry Freeman
CEO @ BBAE
This article is for informational purposes only and is neither investment advice nor a solicitation to buy or sell securities. All investment involves inherent risks, including the total loss of principal, and past performance is not a guarantee of future results. Always conduct thorough research or consult with a financial expert before making any investment decisions. Neither the author nor BBAE has a position in any investment mentioned.
