Trump Tariffs, Value Investing Debate, $NBN Investment Case, InsiderEdge Highlights, and More
Welcome back to the BBAE Blog, your trusted source for the latest investment insights and analyses from the BBAE team. This week, we’re excited to share some highlights that will keep you informed and ahead of the market. Don’t forget, some of our most valuable insights are available exclusively in the BBAE Pro app—download it now to unlock full access!
- Trump Tariffs: Will They Work? Will They Happen?
- Factors and Active ETFs: Investing’s Future?
- InsiderEdge Highlights: November 2024’s Top Insider Trades
- Hinde Group: Northeast Bank ($NBN) Investment Case
- News Roundup: American Productivity Rocks, Trump Trades, Dividends Good or Bad?
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.
Trump Tariffs: Will They Work? Will They Happen?
James Early, CIO at BBAE, examines the economic and investment implications of tariffs in his article, “Trump Tariffs: Will They Work? Will They Happen?” Highlighting both historical and current contexts, he explains how tariffs, while often promoted as tools to protect domestic industries or reduce trade deficits, primarily impose higher costs on the implementing nation’s consumers. Early explores how these measures could lead to shifts in global supply chains, slower economic growth, and emerging opportunities in markets that fill the gaps left by affected countries. The article provides a balanced analysis, offering insights for investors navigating tariff-driven uncertainties. Click here to learn more.
Factors and Active ETFs: Investing’s Future?
James Early, CIO at BBAE, hosts a conversation with Zach Wainwright and Greg Stoner of Twin Oak, an ETF company, to discuss the evolving world of value investing. They argue that while value investing is far from obsolete, its future lies in factor investing and strategic active management. Key topics include the rise of active ETFs, market inefficiencies, and the importance of stock picking in driving returns. They also highlight the potential of tax management to add extra returns and the growing role of bespoke ETFs for tailored solutions. Watch the full conversation here.
InsiderEdge Highlights: November 2024’s Top Insider Trades
- Palladyne AI Corp. ($PDYN): Reported on November 5, a Director purchased 215,053 shares at $2.20/share for $473K. Following the InsiderEdge signal, the stock price surged by +140% to $4.68.
- ThredUp Inc. ($TDUP): Reported on November 19, a Director acquired 69,324 shares at $0.95/share for $65,946.19. After the InsiderEdge signal, the stock price increased by +72.28% to $1.74.
- Sleep Number Corp. ($SNBR): Reported on November 19, a 10% Owner purchased 43,140 shares at $12.90/share for $556K. Since the InsiderEdge signal, the stock price climbed by +52.46% to $18.57.
Hinde Group: Northeast Bank ($NBN) Investment Case
Hinde Group’s Q3 2024 Partner Letter highlights Northeast Bank ($NBN) as a compelling investment due to its strategic loan purchasing at favorable terms and its flourishing partnership with Newity for SBA 7(a) loan originations. The bank’s ability to secure high-margin loans, combined with the scalability of its Newity partnership, positions it for significant growth in net income. With a proven leadership team, innovative strategies, and strong market traction, Hinde Group remains optimistic about Northeast Bank’s long-term potential. Read the full article here.
News Roundup: American Productivity Rocks, Trump Trades, Dividends Good or Bad?
This week’s news roundup covers several key topics:
- American Productivity Leads the Way: Claudia Sahm highlights a surge in U.S. productivity, driven by a strong job market and increased business startups, partially fueled by COVID-era policies. This trend justifies higher U.S. equity valuations and maintains the country’s dominance in global market capitalization.
- Trump Trades Softer in Round Two: Markets responded to recent Trump policies differently compared to 2016. While sectors like banking and small caps gained, the bond and currency markets showed skepticism about inflation management. Surprisingly, Bitcoin emerged as a standout winner, reflecting confidence in pro-crypto policies.
- Dividends: Good or Bad? The debate continues. Recent data suggests no-dividend stocks offer higher growth potential, while earlier studies argue that high-dividend stocks deliver better earnings growth. The conclusion? It depends on the time frame and perspective.
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.
