Google’s Future, The Sahm Rule, Burry’s Portfolio Moves, and the Latest CPI Update
Welcome back to the BBAE Blog, your trusted source for the latest investment insights and analyses from the BBAE team. Our featured articles for this week are:
- What’s the Sahm Rule? Hint: Are We in a Recession?
- Google Has Big Upside, Breakup Risk and All
- Michael Burry – Portfolio Update – Q2 2024
- Weekly Roundup: Benevolent CPI, Benevolent Volatility, Uber
Need a reminder of why BBAE? We have one goal: to provide you with exclusive content and data to help you make informed investing decisions. Explore a wealth of market insights and potential investing opportunities that you can’t find anywhere else.
Make sure you catch our Weekly Roundup, where this week, we cover volatility’s surprising impact on future stock returns, the latest inflation figures bringing good news, and Uber’s impressive financial turnaround.
What’s the Sahm Rule? Hint: Are We in a Recession?
BBAE CIO James Early explores the Sahm Rule, a buzzing term in economics signaling a potential U.S. recession. He explains the rule’s mechanics, its creator Claudia Sahm’s current stance, and its implications for investors. James also discusses the challenges in defining recessions and the rule’s performance compared to other indicators. We examine the complexities of economic forecasting and the search for clarity in uncertain times. Read the full article here.
Google Has Big Upside, Breakup Risk and All
In a discussion with BBAE CIO James Early, Stock Market Nerd founder Brad Freeman shares his take on Alphabet (Nasdaq: $GOOG) following its designation as a monopoly by Federal District Judge Amit Mehta. Despite rumors of a potential DOJ-led breakup, Brad argues that Google’s strong market position and advancements in AI make it well-positioned to not only survive but thrive. He believes the concerns are overblown, seeing Alphabet as a resilient stock with significant long-term potential. Watch the full interview to hear why Freeman thinks Alphabet should stay on your radar.
Michael Burry – Portfolio Update – Q2 2024
Michael Burry, famed for predicting the 2008 financial crisis, has released his Q2 2024 portfolio update. Continuing his trend of high turnover, Burry opened several new positions while significantly trimming his portfolio to just 10 holdings—the lowest since Q4 2022. This quarter also saw Burry making notable adjustments to his Chinese tech stock investments and adding two major new positions that now rank among his top three holdings. Click here for the full article.
Benevolent CPI, Benevolent Volatility, Uber
This week’s news roundup covers several key topics:
- Volatility and Stock Returns: An analysis by Charlie Bilello of Creative Planning reveals that periods of high volatility, both spikes and plunges, tend to lead to above-average stock returns in the following year. This challenges the common perception of volatility as purely negative for investors.
- Inflation Update: July’s Consumer Price Index (CPI) dropped to 2.9%, the lowest since 2021, bringing the Federal Reserve closer to its 2% target. Many non-food and energy items are experiencing deflation, signaling progress in the Fed’s efforts to stabilize prices.
- Uber’s Financial Turnaround: A graphic shared by the GRIT newsletter illustrates Uber’s journey from significant losses to positive free cash flow, demonstrating that sometimes company plans do come to fruition, rewarding patient investors.
Read the full Weekly Roundup post here.
Happy Investing,
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.
