US Debt Concerns, Leveraged ETFs Debate, $TRUP Analysis, Rate Cut Reactions, and More
Welcome back to the BBAE Blog, your trusted source for the latest investment insights and analyses from the BBAE team. This week, we’re excited to share some highlights that will keep you informed and ahead of the market. Don’t forget, our most valuable insights are available exclusively in the BBAE Pro app—download it now to unlock full access!
- Does the US Have Too Much Debt?
- Are Leveraged ETFs Good for Humanity?
- Saga Partners: Trupanion ($TRUP) Analysis
- News Roundup: 50 bps Rate Cut, Have Emerging Markets Emerged – and Are Utility Stocks Cheap?
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Does the US Have Too Much Debt?
BBAE CIO James Early examines the US national debt as interest payments surpass $1 trillion for 2024. He contrasts JP Morgan’s calm outlook with Peter Schiff’s dire predictions, exploring historical context like post-WWII parallels and the 1971 dollar de-pegging. James notes both Trump and Harris are likely to increase the deficit and discusses challenges in cutting major government programs. He highlights the growing interest burden on the federal budget and questions the sustainability of low taxes with high government spending. Read the full article here.
Are Leveraged ETFs Good for Humanity?
Will Rhind, CEO of GraniteShares, shares his thoughts on leveraged ETFs in a conversation with James. Rhind addresses the mixed opinions surrounding these financial products, often criticized as tools for risky market behavior, yet defended by free-market advocates like himself. He argues that leveraged ETFs, when used responsibly, are valuable additions to the investor toolkit. In their discussion, they also explore GraniteShares’ HIPS high-yield ETF and the company’s ventures into gold and AI ETFs. Watch the full video here.
Saga Partners: Trupanion ($TRUP) Analysis
Saga Partners showcases Trupanion (NYSE: $TRUP) as a promising investment in their H1 2024 letter. TRUP, North America’s leading pet medical insurer, is revolutionizing the industry with its unique cost-plus model and integrated solution. With only ~3% market penetration, Sage see’s TRUP having significant growth potential. The company’s focus on customer value and consistent subscriber growth underpin its competitive edge. Read full investor letter here.
News Roundup: 50 bps Rate Cut, Have Emerging Markets Emerged – and Are Utility Stocks Cheap?
This week’s roundup covers several key topics:
- Fed Cuts Rate by 50 bps – Market Reacts Unpredictably: The Federal Reserve made a larger-than-expected 50 basis point rate cut. Markets initially dropped 0.3% on Wednesday before rising nearly 2% on Thursday, showing confusion about the implications of this move.
- Emerging Markets Converging with Developed Markets: Recent data suggests that, excluding the US and China, emerging and developed markets are showing remarkably similar performance. This trend points to a potential return to a simpler “US” and “international” categorization in global investing.
- Utility Stocks Show Promise: Despite outperforming the S&P 500 year-to-date with a 23% gain, utility stocks may still have room for growth. Expert Roger Conrad suggests selective investing in individual utility stocks rather than broad sector ETFs.
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.
