Market Momentum, NVDA Covered Calls, Election Year Trends, and More
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:
- This Stock Market Has More Momentum than Ever (Literally)
- Generating Income with Covered Calls: Insights from James Early and Enrique Abeyta
- Buckley Capital: A Closer Look at Specialty Chemicals Company Ingevity ($NGVT)
- Lemonade ($LMND) – The Puppet Master
- News Roundup: Stocks in Election Years, Cash on Sidelines Gone, CME’s ROIC
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 the behavior of stocks during election years, debunk the myth of cash sitting on the sidelines ready to boost the market, and provide an in-depth analysis of CME Group’s return on invested capital (ROIC).
This Stock Market Has More Momentum than Ever (Literally)
The current US market is experiencing unprecedented momentum, defined by the continuous upward trajectory of stock prices. BBAE CIO James Early explores the factors driving this momentum, the implications for different types of investors, and whether this trend is sustainable. Read the full article here.
Generating Income with Covered Calls: Insights from James Early and Enrique Abeyta
CIO James Early discusses a recent trade idea from Enrique Abeyta of HX Research: selling covered calls on Nvidia ($NVDA). The strategy offered a quick profit opportunity, and in the video, Enrique explains the principles behind generating income with covered call writing and the criteria for selecting suitable stocks. Read the full article here.
Buckley Capital: A Closer Look at Specialty Chemicals Company Ingevity ($NGVT)
In a post this week from our Pro Investor Letters, we highlight Buckley Capital’s investment in Ingevity ($NGVT), a specialty chemicals company facing temporary challenges due to high raw material costs. Buckley Capital views Ingevity as a well-managed company with significant growth potential. They highlight Ingevity’s strong market position, diverse product applications, environmental contributions, and recent positive developments that position it for substantial future growth. Read the full article here.
Lemonade ($LMND) – The Puppet Master
Brad Freeman’s analysis covers Lemonade’s potential for substantial future gains, its innovative use of AI, and its competitive advantages in the insurance industry. Lemonade now trades for less than 2x enterprise value to 2024 gross profit (EV/GP). The company has shown impressive growth and efficiency, with a significant cash reserve and a clear path to profitability. Read the full article here.
Weekly News Roundup: Stocks in Election Years, Cash on Sidelines Gone, CME’s ROIC
This week’s news roundup covers several key topics:
- A Calm Stock Market in Election Years: Historical trends show that stock markets tend to stabilize during election years, with lower volatility and moderate returns.
- Cash on the Sidelines: The notion of excess cash ready to enter the market is debunked, with data showing that excess savings have diminished.
- CME’s ROIC Analysis: A deep dive into the return on invested capital for CME Group, highlighting why its financial performance may be stronger than it appears.
Read the full 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.
