Strategies from Wes Gray, Is All-Day Trading Dangerous? $MEDP’s Upside Potential, and More
Welcome back to the BBAE Blog, your trusted source for the latest investment insights and analyses from the BBAE team. This week, we’re excited to share some highlights that will we hope will keep you ahead of the pack. Don’t forget, some of our most valuable insights are available exclusively in the BBAE Pro app—download it now to unlock full access!
- This Is How to Invest | Wes Gray of Alpha Architect
- The Worst Idea in Modern Finance
- LVS Advisory: Medpace ($MEDP) – Long-Term Growth Opportunity in Niche Market Amid Headwinds
- Weekly Roundup: Rough Decade Really Coming for Stocks? US Equity Valuations, Momentum, plus Energy’s Underperformance
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.
This Is How to Invest | Wes Gray of Alpha Architect
Wes Gray, PhD, of Alpha Architect, joins James Early to discuss his approach to evidence-based investing. A believer in both value and growth strategies, Gray shares practical advice for new investors and explains his research showing that investors do share alpha-generating ideas in online communities, challenging conventional beliefs. He also touches on diversification and the importance of basing decisions on data rather than emotions. Wes provides insights that resonate with both seasoned and novice investors alike. Watch the full video here.
The Worst Idea in Modern Finance
BBAE CIO James Early critiques the NYSE’s plan to extend Arca exchange trading to 22 hours, arguing it could harm rather than help financial markets. He examines how excessive trading accessibility can lead to poor investor outcomes, citing research showing 95% of day traders lose money and highlighting concerning statistics about impaired decision-making during after-hours trading, particularly among younger investors. James also explores the historical evolution of securities markets, their societal benefits, and why concentrated trading windows might actually be better for long-term investors. Read the full article here.
LVS Advisory: Medpace ($MEDP) – Long-Term Growth Opportunity in Niche Market Amid Headwinds
LVS Advisory emphasizes Medpace Holdings ($MEDP) as a valuable long-term investment. Medpace, a full-service Contract Research Organization (CRO), specializes in managing clinical trials for small biotech companies through a vertically integrated model. Despite a recent stock price decline after an earnings miss, LVS Advisory views this as a buying opportunity, given Medpace’s strong fundamentals: 20%+ organic revenue growth, 100%+ free cash flow conversion, and a 50%+ return on invested capital. With a 5% share in the small and mid-sized CRO market, Medpace benefits from a niche positioning and growing $28 billion market potential. While facing short-term headwinds in biotech funding, LVS Advisory believes the company’s low-cost advantage, robust cash flow, and alignment with expanding R&D spending present an appealing opportunity for patient investors. Read the full article here.
Weekly Roundup: Rough Decade Really Coming for Stocks? US Equity Valuations, Momentum, plus Energy’s Underperformance
This week’s financial news highlights several key developments:
- Goldman’s Bearish Market Forecast Sparks Debate: Goldman Sachs’s prediction of 3% annual stock market returns over the next decade has triggered discussion, with Bank of America suggesting even lower returns (1-2%) for the S&P 500. However, critics like Ritholtz Wealth Management note such low returns have historically occurred less than 9% of the time.
- Credit Market Warning Signs: High-yield bond spreads are at their lowest since 2007, potentially signaling lower future returns. Historical data shows when credit spreads are this tight, markets have averaged just 2.9% returns over the following five years.
- Momentum Factor Proves Its Worth: Analysis shows momentum investing has consistently outperformed traditional equity indices over the past 50 years, challenging traditional fundamental-only approaches.
- Energy Sector Loses Steam: Energy stocks, previously market favorites and beneficiaries of anti-ESG investment flows, have shown significant underperformance, highlighting the challenges of sector rotation strategies.
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.
