The Hong Kong Observatory issued an amber rainstorm warning signal at 3pm on Sunday, warning of widespread heavy rain and intense gusts as the city continued to face a rainy weekend. The forecaster on Sunday afternoon said that heavy rain has fallen or is expected to fall over the city, with rates exceeding 30mm [1.2 inches] in an hour, and that it was likely to continue. It urged residents to avo...
The Hong Kong Observatory issued an amber rainstorm warning signal at 3pm on Sunday, warning of widespread heavy rain and intense gusts as the city continued to face a rainy weekend. The forecaster on Sunday afternoon said that heavy rain has fallen or is expected to fall over the city, with rates exceeding 30mm [1.2 inches] in an hour, and that it was likely to continue. It urged residents to avoid areas prone to flooding and take necessary precautions against impending showers. It also issued...
Spannerdude/iStock via Getty Images Investment Thesis I recommend a long Porsche ( DRPRY )/short Ferrari ( RACE ) pair trade over an 18-month horizon, along with a long on Ferrari in the short term as the Luce becomes the new trend. I believe the P911/RACE ratio will increase from ~0.14 to ~0.17, driven by convergence on both sides: Ferrari is de-rating as price increases slow from 10-15% to ~5% a...
Spannerdude/iStock via Getty Images Investment Thesis I recommend a long Porsche ( DRPRY )/short Ferrari ( RACE ) pair trade over an 18-month horizon, along with a long on Ferrari in the short term as the Luce becomes the new trend. I believe the P911/RACE ratio will increase from ~0.14 to ~0.17, driven by convergence on both sides: Ferrari is de-rating as price increases slow from 10-15% to ~5% and its 2030 targets have come below consensus, while Porsche is re-rating as the new Strategy 2035 pivots away from the failed EV-focused strategy and toward exclusivity. Business and Strategy Ferrari Ferrari was founded in 1947 in Italy by Enzo Ferrari and went public in 2015. Ferrari produces high-performance sports cars, supercars, and grand tourers. Key models include the 296 GTB, SF90 Stradale, Purosangue, and Roma. The defining feature of Ferrari is exclusivity. The company deliberately limits production (~13,750 cars per year) to maintain waiting lists and uses an allocation system prioritizing existing customers (84% of buyers in 2025, up from 59% in 2021). The average Ferrari sells for ~€500,000, which is more than 4x the price of the average Porsche. Additionally, the high customization margins significantly increase revenue. Porsche AG (FWB: P911) Porsche was founded in 1931 in Germany by Ferdinand Porsche and went public in 2022. Porsche produces a broader range of vehicles spanning sports cars, SUVs, luxury sedans, and EVs. Key models include the flagship Porsche 911, Cayenne, Macan, Porsche Panamera, and the electric Taycan. Historically, Porsche has been an "accessible luxury" brand, selling around 280,000-310,000 cars per year (roughly 20x Ferrari's volume) at an average price of ~€121,000. Own Analysis Own Analysis Historical Performance and Relative Valuation The key narrative behind the relative performance between the two companies is the following: over the past few years, Ferrari was valued by the market as a luxury company, the Hermes of car companies...
MercadoLibre (NASDAQ: MELI) stock is down 19% this year, but amid market disappointment, Wall Street is still confident in the stock. Out of 26 covering analysts, 85% rate it a buy, while 15% have it as a hold. Should you go with Wall Street, or sell MercadoLibre? Despite what its sagging stock might suggest, MercadoLibre is still in high-growth mode. Management pointed out that even though it's s...
MercadoLibre (NASDAQ: MELI) stock is down 19% this year, but amid market disappointment, Wall Street is still confident in the stock. Out of 26 covering analysts, 85% rate it a buy, while 15% have it as a hold. Should you go with Wall Street, or sell MercadoLibre? Despite what its sagging stock might suggest, MercadoLibre is still in high-growth mode. Management pointed out that even though it's several decades old, the company is still expanding like a young start-up. It's the leader in e-commerce in the 18 countries where it operates, and it's a major player in fintech. In the 2026 first quarter, revenue increased 46% year over year (currency neutral), with a 36% increase in gross merchandise volume and a 55% increase in total payment volume. Continue reading
Through the first five months of the year, roughly $836 billion of cash has been invested in exchange-traded funds (ETFs). Vanguard Total International Stock Index ETF (NASDAQ: VXUS) was the fifth-largest beneficiary of that cash, but there's an important twist here. Normally, following the crowd is a risky approach, but in this situation, you may want to consider doing it. Of the cash flowing int...
Through the first five months of the year, roughly $836 billion of cash has been invested in exchange-traded funds (ETFs). Vanguard Total International Stock Index ETF (NASDAQ: VXUS) was the fifth-largest beneficiary of that cash, but there's an important twist here. Normally, following the crowd is a risky approach, but in this situation, you may want to consider doing it. Of the cash flowing into ETFs so far in 2026, the three with the largest inflows are all broad-based U.S. equity ETFs, two of which track the S&P 500 index . Number four is a short-term bond ETF, which is basically just a step above cash. Which makes number five, Vanguard Total International Stock Index ETF, stand out. Image source: Getty Images. Continue reading