Bluebird Bio (BLUE) Stock Is in Focus Following FDA Approval (2 min read)

Shares of Bluebird Bio went up after FDA approved SKYSONA, a gene therapy to treat a rare disease that afflicts young boys called Cerebral Adrenoleukodystrophy (CALD). Bluebird Bio said they plan to have SKYSONA available in the US by year end. This is the second regulatory approval of their products with beti-cel therapy for rare blood disorder approved in August. This shows the company is on the right track with its gene therapy and poised to benefit from the commercial sales in the near future. Although BLUE stock is down at market close, it’s likely due to broader economic factors at play.

The Fed will likely refrain from a 100-basis-point rate hike this week to avoid unnerving already anxious markets, CFRA says (2 min read)

CFRA research said it’s unlikely the Fed will increase the rate by 1% this week. A rate hike of that size might unnerve the market and lower the chances of a soft landing which is what the Fed aims to deliver. The decision on the next rate hike is on Wednesday led by Fed chair Jeromy Powell. Investors widely expect a 0.75% increase but still see a 20% chance of a 1% rate hike. The US 2 year Treasury, which is sensitive to rate changes, reached 3.96% on Monday for the first time since 2007.

Volkswagen targets 75 billion euro valuation in landmark Porsche IPO (2 min read)

Porsche's valuation of 75 billion euro will be Germany’s second largest and Europe’s third largest IPO record in history. Volkswagen said it will begin trading on the Frankfurt Stock Exchange on Sept 29. The sovereign wealth funds of Qatar, Abu Dhabi, Norway, and mutual fund company T. Rowe Price will subscribe 3.68 billion euros as cornerstone investors. If the IPO goes ahead, Volkswagen will propose to pay 49% of total proceeds to shareholders as a special dividend in early 2023.

US lawmakers’ stock market trades targeted by ETFs (4 min read)

A New York based asset manager, Subversive Capital Advisor, has filed with the SEC to launch two ETFs tracking the trades made by members of Congress. The ticker symbols are NANC for the Democrats and CRUZ for the Republicans, referencing Ted Cruz and Nancy Pelosi. Members of Congress are required to disclose trades more than $1000 made by themselves or their spouse within 45 days. Subversive Capital plan on using this data to determine the holdings and weightings. They expect the portfolio to be 500 to 600 stocks with a management fee of 1%.

This Has Been One of the Hottest ETFs This Year (1 min read)

With the S&P 500 sliding 20% year to date, the top performing ETFs this year can only be betting against the market or investing in energy. Invesco Dynamic Energy Exploration & Production ETF (PXE) falls into the latter category. It surged more than 50% this year, making it one of the best performing ETFs across all categories. PXE holds about 30 oil and gas companies including some of the popular stocks like ConocoPhillips, Devon Energy, Murphy Oil, and Diamondback Energy. The management fee is 0.63% which is not cheap but is justifiable based on returns this year.

Should You Buy Stocks Now or Wait? Here's Warren Buffett's Advice (3 min read)

As the stock markets now seem much more attractive than a year ago, a common question for investors is - buy now or wait longer? You may find some insight to this question from some of the words Warren Buffet said in the past. For active investors, be aggressive but also selective with your investments. Although it might be true to Warren’s saying “Be greedy when markets are fearful”, his success also came from being selective with his investments. Most companies do well in a bull market, but only great companies will stand out in a bear market. For less-active investors, his most popular advice is to dollar-cost average using a low-cost index fund. Dollar-cost averaging can eliminate the need to time the market and he has said multiple times that low-cost indexes will outperform most active strategies in the long run.

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Thanks,
Thomas

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