• October 21, 2024

Election Trades Heat Up

Investors have been ramping up bets on the presidential election. Some investors have been eyeing bullish trades tied to banks in a wager that Donald Trump will win and potentially loosen regulations tied to financials, said Danny Kirsch, head of options at Piper Sandler.

  • October 21, 2024

Nuclear energy: Small modular reactors' role in fueling AI boom

The growing energy appetite to power AI and data center technologies has led companies to search for clean and cost-efficient energy sources, most notably nuclear power. Tech companies like Amazon (AMZN), Microsoft (MSFT), and Alphabet's Google (GOOG, GOOGL) have been signing deals with developers to build out small modular reactors (SMRs) to meet their energy needs. Yahoo Finance special reporter Akiko Fujita dives into the details, highlighting Big Tech's rising interest in the future of nuclear energy. She notes the benefits these SMRs could pose for power grids while no commercial modular reactors have been completed in the US yet. X-energy CEO Clay Sell sat down with Catalysts earlier today to discuss Amazon's investment into the nuclear reactor designer's SMR plans. Watch Kairos Power CEO Mike Laufer interview with Yahoo Finance last week about the nuclear power startup's partnership with Google. To watch more expert insights and analysis on the latest market action, check out more Catalysts here. This post was written by Angel Smith

  • October 21, 2024

Why this portfolio manager prefers value over growth stocks

Brian Mulberry, Zacks Investment Management client portfolio manager, joins Wealth! to discuss why he prefers value stocks over growth stocks. Mulberry explains that the valuations of the "Magnificent Seven" are getting "a little bit top-heavy." He tells Yahoo Finance, "The S&P 500 (^GSPC) right now is trading the broader market at about a 22 times forward valuation when you're looking at earnings there. If we concentrate that down into the Magnificent Seven, it's still in the mid-to-high 30s. When you can look at the earnings growth that's expected in a place like utilities (XLU) and their forward P/E (price-to-earnings ratio) is only about 9 or 10, there's a much stronger valuation conversation to be had looking at those particular sectors." He notes that in those sectors, there are better-performing individual stocks that will see "durable earnings growth," offering a better investment opportunity. "So we really feel like you can do better at the current valuation levels if you're rotating back to some of those more traditional value sectors, right now," Mulberry adds, pointing to banks as an example. To watch more expert insights and analysis on the latest market action, check out more Wealth here. This post was written by Melanie Riehl

  • October 19, 2024

SCHD: Split or Not, This Is a Strong Dividend ETF

The Schwab U.S. Dividend Equity ETF (SCHD) is one of the most popular dividend ETFs in the market today with a massive $63.7 billion in assets under management (AUM). The fund recently made some waves by executing a 3-for-1 split which went into effect on October 10th. We’ll discuss the rationale and details regarding the share split in this article. But more importantly, we’ll evaluate the merits of holding SCHD in an investment portfolio. I’m bullish on this well-known dividend ETF based on th