The crypto market crash resumed last week as Bitcoin and most altcoins plunged by double digits. Bitcoin remains below the key support at $90,000, while Ethereum has dropped to $3,000. Other tokens like Cardano, Shiba Inu, and Dogecoin have also plummeted by double digits. 

Crypto market crash could stall in case of a more dovish Federal Reserve 

One potential catalyst that may help to stall the crypto market crash is the upcoming Federal Reserve interest rate decision,which will come out on Wednesday this week.

Historically, the final decision has been one of the most important ones in the market as it sets the tone for what to expect in the new year. 

This meeting will be key because it will shed more light on the divisions among officials, with some of them supporting cuts and others supporting a pause. 

For example, an official like Jeff Schmid has opposed cuts, arguing that inflation has remained above the target point of 2% for over 4 years. He argues that cutting interest rates will stimulate inflation.

On the other hand, some Fed officials argue that the bank should cut rates because of the cracks in the labor market. A report released last week showed that the economy lost 36,000 jobs, the worst performance in over 2 years.

Therefore, an interest rate cut and a dovish policy may help to end the ongoing crypto market crash.

Cardano Midnight mainnet launch

The other main catalyst for the crypto market will be the upcoming Midnight launch by Cardano, the tenth biggest coin in the industry.

Midnight is a major project that has been developed in the past few years, and Charles Hoskinson and the team believes that it will solve the main challenges facing the network. 

For example, they expect that Midnight will boost the network’s stablecoin volume and decentralized finance (DeFi) total value locked, which has lagged the market in the past few years.

Still, it is unclear whether the Midnight launch will have a positive impact on the crypto market, as Charles Hoskinson has a known record of overpromising and underdelivering. 

Top token unlocks 

The other main catalyst that may have a negative impact on the crypto market is the upcoming token unlocks. Data compiled by DeFi Llama shows that tokens worth over $30 million will be unlocked this week. 

Flare tokens worth over $3.4 million will be unlocked this week. Historically, the FLR token normally drops by about 10% ten days after the unlock.

Meanwhile, $10 million worth of EigenLayer tokens will be unlocked on Wednesday, while $20.3 million worth of Bluefin will be released. Other major tokens with unlocks this week are Aptos, Story, Arbitrum, and Starknet.

Crypto ETF inflows 

One reason behind the ongoing crypto market crash is that American investors have been pulling their assets from crypto ETFs. Data shows that spot Bitcoin ETFs shed over $87 million in assets last week. BlackRock’s IBIT ETF has shed over $2.7 billion in assets in the last few months.

Ethereum ETFs also shed over $65 million in assets last week, bringing the cumulative total inflows to over $12.8 billion. On the other hand, tokens like XRP, SOL, DOGE, LINK, and HBAR ETFs have done well in terms of inflows. A surge in inflows may help to offset the ongoing crypto market crash.

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The Hang Seng Index pulled back on Monday, even as China reported stronger-than-expected trade numbers and copper price neared an all-time high. The blue-chip index fell to H$25,833, down from the year-to-date high of H$27,300.

China trade surges as copper nears all-time high 

The Hang Seng and other top Chinese indices remained under pressure despite macro data showing that the economy continued doing well.

Data released on Monday morning showed that China’s trade surplus surged to $1 trillion for the first time this year as exports rose by 5.9% from the same period last year, while imports rose by just 1.9%. This increase happened as tensions between China and the United States cooled a bit after the first meeting between Donald Trump and Xi Jinping.

The rising Chinese trade numbers came a week after another set of survey data pointed to more economic slowdown in the country. The country’s manufacturing and services PMIs remained below 50, a sign that the economy was slowing.

Meanwhile, copper price continued its strong surge and neared a record high. It jumped to a record high of $11,705 a ton as analysts at Citigroup hinted that it had more upside to go this year.

Copper is an important metal often seen as a barometer for the world economy because of its role in key industries like manufacturing and construction. As such, the soaring price could be a sign that the Chinese economy is doing well since it is the biggest buyer.

Looking ahead, the next important catalyst for the Hang Seng Index is the upcoming Federal Reserve interest rate decision on Wednesday, which will set the tone for what to expect in 2026.

The Fed decision is key for the Hang Seng Index because of the peg that has always existed on the Hong Kong dollar. This peg means that the Hong Kong Monetary Authority (HKMA) always does what the Fed does.

Top Hang Seng Index movers 

Most companies in the Hang Seng Index were in the green today, with Pop-Mart being the top laggard as it dropped by over 7%. It has dropped by over 40% from the year-to-date high as the Labubu craze cooled. 

China Hongqiao, WH Group, ZTO Express, China Shenhua Energy, China Merchants Bank, and ICBC were the top laggards on Monday as they dropped by over 2.63%. 

On the other hand, Baidu stock price jumped by 3.70% after reports that the company was considering listing Kunlunxin, its chip business in Hong Kong, a move that will value the company at over $3 billion. It also jumped after Cathie Wood bought a stake in the company, a sign that she believes the company is highly undervalued.

The other top gainers in the Hang Seng Index are companies like SMIC, Ping An Insurance, Geely Automobile, Xinyi Glass, and China Resources Beer.

Hang Seng Index technical analysis 

The daily timeframe chart shows that the Hang Seng Index has remained in a tight range in the past few months. It has been inside the narrow channel between the support and resistance levels at H$25,190 and H$27,190 since October.

As a result, the stock is consolidating at the 50-day and 100-day Exponential Moving Averages (EMA), while the Average Directional Index (ADX) has plunged to 9.30, its lowest level this year, a sign that its volatility has faded.

Therefore, the index will likely remain in this range in the coming days as investors wait for the upcoming Fed interest rate decision.

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The Nikkei 225 Index was flat on Monday as the Japanese statistics agency published mixed economic numbers, which raised the odds of Sanae Takaichi’s stimulus passing in parliament. It was trading at ¥50,385 on Monday, slightly above the November low of ¥48,206.

Japan reports mixed economic data 

The Nikkei 225 Index has remained in a narrow range after a series of economic numbers from Japan. 

A report by the statistics agency showed that the economy expanded by 3.4% in the third quarter, higher than the sector median of 3.3%. On the other hand, the annualized growth rate shrank by 0.6% on a QoQ basis and by 2.3% on an annual basis.

This slowdown was mostly because of the falling capital expenditure and external demand, which dropped by 0.2% in the last quarter. This decline was offset by a small increase in private consumption.

These numbers will help to justify Takaichi’s stimulus package, which she announced last week, featuring the biggest domestic spending since the pandemic started in 2020. Officials expect that the spending will help to boost the economy by 1.4% per year in the next three years.

Still, analysts believe that the Bank of Japan (BoJ) will hike interest rates in its December 19 meeting, with officials arguing that the softness in key sectors like construction and exports will be temporary. 

A BoJ rate hike will be important as it will fuel a divergence between the US and Japan, with economists expecting the Federal Reserve to cut interest rates by 0.25% in this meeting. This explains why the Japanese yen has rebounded against the US dollar, moving from 157.8 on November 20th to 155 today.

The rising hopes for a BoJ hike explains why Japan bond yields have soared this month, with the ten-year rising to 1.95% and the five-year moved to 1.437%, up from the year-to-date low of 0.683%.

Meanwhile, the Nikkei 225 Index steadied as tensions between China and Japan continued, with Chinese jets pointing their radar at Japanese aircraft, leading to Japan’s prime minister vowing a response.

Top Japan stocks laggards and leaders

Most companies in the Nikkei 225 Index were in the red on Monday, with Softbank being the top laggard. The Softbank stock price has crashed by over 30% from the year-to-date high as concerns about its exposure to OpenAI jumped. 

The company has committed to investing up to $40 billion, a risky move for a company that is yet to be profitable and one that is facing substantial competition from companies like Google, xAI, and Anthropic.

The other top laggards in the Nikkei 225 Index were companies like Nippon Sheet Glass, Lasertec, Tokyo Electric Power, Komatsu, Hitachi, and Seven & I.

On the other hand, companies like Fujikura, Mitsubishi Estate, Japan Steel Works, Sumitomo Electric, and Tokyo Fudosan were the top gainers.

Nikkei 225 Index technical analysis 

The daily timeframe chart shows that the Nikkei 225 Index has rebounded from the year-to-date low of ¥30,825 in April to the current ¥50,523, mirroring the performance of the global stock market.

Most recently, the index has rebounded from a low of ¥48,206 on November 19 as it approached the year-to-date high of ¥52,627.

The index remains above the 50-day and 100-day Exponential Moving Averages (EMA) and the Supertrend. Also, top oscillators like the Relative Strength Index and the MACD have continued rising in the past few weeks.

Therefore, the most likely scenario is where the index continues rising as odds of a stimulus package in Japan rose. If this happens, the next key resistance level to watch will be at ¥52,627. A drop below the key support level at ¥48,205 will invalidate the bullish outlook.

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Legal & General stock price has held steady in the past few weeks, moving from a low of 230p in September to the current 248p. It has jumped by 30% from its lowest level this year, bringing its market capitalization to over £18.8 billion. This article explores whether LGEN stock is a good buy as its dividend yield remains at 8%.

Legal & General’s business is doing well 

LGEN, the giant British insurance company, is doing well, with its revenue and profitability continuing its upward trajectory.

The most recent results showed that the company’s earnings-per-share (EPS) rose by 9% in the first half of the year to 10.94p, up from the 10.07p it made in the same period last year. 

This growth happened across its three main businesses, institutional retirement, asset management, and retail, with its retail customers growing to over 12.4 million.

Its retail assets rose to over £300 billion, and the management expects to have between £40 billion and £80 billion in Workplace DC by between 2024 and 2028. It also expects that the retail operating profit will have a compounded annual growth rate (CAGR) of between 4% and 6% in this period.

At the same time, the management has continued to simplify its business by selling its US protection business and inking a partnership with Meiji Yasuda. It has also sold assets in its Corporate Investment Units as it seeks to become a simpler organization.

At the same time, the company has announced several major deals, including its investment in Propium Capital Partners, which will complement its stake in Taurus. The goal is for the company to become a major player in the real estate industry.

The recent results showed that the company’s core operating profit rose to £859 million in the first half of the year from £809 in the same period last year. At the same time, the company’s profit after tax rose to £316 million from the previous £226 million.

Legal & General is most loved because of its dividend payouts to investors as it has become one of the highest-yielding companies in the FTSE 100 Index. 

It has a dividend yield of 8.73%, higher than the FTSE 100 Index average of 3.12%. It is also higher than the British inflation of 3.6%, making it an ideal company for investment income. 

Indeed, the management continues to simplify its operations and expand in high profitable areas to boost its growth. It also has a encouraging ratios, including a capital coverage ratio of 217%. The management is also controlling costs, with its underlying cost growth rising by 1%.

LGEN share price technical analysis 

LGEN stock chart | Source: TradingView

The daily timeframe chart shows that the LGEN share price bottomed at 230p, its lowest level in September and October this year. It has now rebounded to 248p as the management continues to improve its operations.

LGEN stock price has now moved slightly above the key resistance level at 247p, its highest level on November 12. It has also retested that level, confirming a break-and-retest pattern.

The stock remains above the 50-day and 100-day Exponential Moving Averages (EMA), which have made a bullish crossover pattern..

Therefore, the most likely scenario is where the stock continues to rise, with the next key level to watch being at 260p, its highest level in August, up by 4.8% from the current level. A move below the key support level at 240p will invalidate the bullish forecast.

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The crypto market was highly volatile last week as Bitcoin and most altcoins plunged on Monday, and then rebounded sharply in the next few days. They then plunged in the final days of the week, with Bitcoin dropping below the important support level at $90,000. 

This article explores some of the top cryptocurrencies to watch this week, including popular names like Terra Luna Classic (LUNC), Starknet (STRK), and Pi Network (PI).

Terra Luna Classic (LUNC) in focus ahead of Do Kwon sentencing

The LUNC token was one of the best-performing coins in the crypto market as it jumped to a high of $0.000081, its highest level since January this year. It was up by over 400% from its lowest level this year, bringing its market capitalization to over $300 million.

Terra Luna Classic token jumped after the community members showed up at a major Binance event. Binance is a major part of the network and is responsible for most of the burning.

The next key catalyst for the LUNC price will be the upcoming Do Kwon sentencing in the United States for his role in the $40 billion Terra collapse in 2022. Kwon pleaded guilty for this collapse, and he now faces decades in prison.

Do Kwon’s sentencing will not directly have an impact on the LUNC token. However, it may lead to more activity from traders, which may trigger more volatility.

The daily timeframe chart shows that the LUNC price has pulled back from last week’s high of $0.00008060 to the current $0.000057. This retreat happened as some investors started to book profits.

Therefore, the most likely scenario is where the token’s volatility continues, with it dropping to the key support level at $0.000050.

Pi Network price in focus as triangle nears confluence 

The Pi Network price will be in the spotlight after the developers announced a major integration of artificial intelligence (AI) into its KYC operations. 

This new integration allows users to use the same underlying technology of Pi Fast Track KYC, which reduces wait time and makes it easier for users to move their tokens to the mainnet. 

It also resolves an issue of validator shortage in some countries and regions. Also, the upgrade enables more validators to move in a faster manner, and reduces the need for more human validator to verify accounts.

According to the developers, 17.5 million pioneers have already passed the KYC process, while 15.7 million of them have migrated fully to the mainnet.

Pi Network believes that the KYC process is an essential one in ensuring that the MiCA proposal is successful, as it is the only crypto project to implement it.

Technically, the Pi Network price is forming a symmetrical triangle pattern on the daily chart, and may likely move out of it this week, especially if the Federal Reserve cuts interest rates and maintains a dovish view. 

Starknet price in focus ahead of token unlocks 

Starknet token has come under intense pressure in the past few months, in part because of the ongoing crypto market crash. Another reason is that the network has become highly dilutive because of its token unlocks.

One of these unlocks will happen later this week when the developers will release 163 million tokens worth over $18.2 million. These tokens are worth about 1.63% of its market capitalization.

Other cryptocurrencies will unlock more tokens this week. Some of the most notable ones are Chainbase, Unibase, Rain, and Movement.

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SoFi stock price tanked by over 6% in the extended hours as concerns about increased dilution continued. It dropped to $27.7 from the closing price of $30, and 15% below the highest point this year. So, is the ongoing sell-off warranted?

SoFi stock price tanks amid dilution fears

SoFi, a top American fintech, came under pressure after a report that it was considering raising $1.5 billion from investors in a share sale that will increase its outstanding shares.

The company is working with Goldman Sachs, with the expected share sale range being between $27.50 and $28.50, a discount from where it was trading on Thursday.

According to Bloomberg, the company hopes to use this new cash to enhance its capital position and to fund new opportunities. This is the second capital raise that the company has made in the last two years.

SoFi has seen its outstanding shares rise gradually in the past few months. It now has 1.20 billion outstanding shares, up from 794 million in 2021.

The capital raise is also notable because the company ended the last quarter with a solid capital position. Its tier-1 risk-based capital ratio is 20%, much higher than the required minimums. 

SoFi business is doing well and could be included in S&P 500 Index 

The most recent results showed that SoFi continued doing well in the third quarter as its financial supermarket business model is thriving. Its revenue rose by 38% to $950 million, while the adjusted EBITDA rose by 29% to $277 million.

Most of this revenue came from fees, which rose by 50% to $409 million. Higher fee revenue is important in an era when the Federal Reserve is cutting interest rates.

The company had other bullish factors, including a surge in loan originations and total deposits, which rose by $3.4 billion to nearly $33 billion.

SoFi’s main benefit is that if offers numerous services that cater to a large population. This includes its banking solutions, credit cards, invest, and loans. As a result, the number of customers has jumped to over 12 million, up from the 3.4 million it had in 2021.

There are signs that SoFi is not all that overvalued, especially when you consider its revenue growth and its margins. Data shows that its revenue growth is ~38%, while its adjusted EBITDA margin is 29%, giving it a multiple of 67%.

The other potential catalyst for the SoFi stock price is that it is one of the companies that may be included in the S&P 500 Index as part of the quarterly reconstitution. Such a move would push its stock significantly higher from where it is today. It is also set to launch SoFi Crypto soon.

SoFi share price technical analysis 

The weekly chart shows that the SoFi stock price has been in a strong uptrend in the past few years, moving from a low of $4.28 to nearly $30. 

A closer look at this chart shows that it has formed a cup-and-handle pattern, which consists of a horizontal resistance and a rounded bottom. It is now in the handle section, which explains its current volatility.

SoFi stock price has remained above the all moving averages and the Supertrend indicator. Therefore, the most likely scenario is where it surges in the next few months, potentially to the psychological level at $35. 

The bullish SoFi share price outlook will become invalid if it moves below the key support level at $23.50.

Read More: Here’s why SoFi stock price is surging and why it could soar 52% soon

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The DocuSign stock price retreated by over 6% after the market closed on Thursday, following the release of its third-quarter financial results. It fell to $66.50, down from the regular session high of $72.35, and 35% below its highest level in December last year.

DocuSign growth has stalled 

DocuSign, a company that thrived during the pandemic, has come under pressure in the past few years as competition in the industry has escalated. This competition is coming from companies like Dropbox, PandaDoc, Google, and Zoho Sign.

As a result, while the company is growing, the pace has deteriorated in the past few years. Financial results released on Thursday showed that its revenue rose by 8% in the third quarter to $818 million, with most of this being in the subscription segment.

DocuSign’s billings rose by 10% to $829 million, while its gross margin dropped a bit to 79.2%.

The management expects that its revenue growth will remain in the single digits, with the fourth quarter revenue coming in at between $825 million and $829 million, representing a 7% annual growth rate.

DocuSign’s billings are expected to come in at between $808 million and $812 million, a 7% increase from the same period last year, and lower than last quarter’s.

Most importantly, DocuSign expects that its annual revenue will be between $3.20 billion and $3.212 billion, while its billings will be between $3.37 billion and $3.39 billion.

These estimates were slightly better than what Wall Street analysts expect. Data compiled by Yahoo Finance shows that the average estimate is that its revenue will be $3.19 billion. DocuSign has a long history of beating analysts’ estimates.

However, the risk is that the company’s annual revenue for next year is expected to continue the deceleration pace, with the average estimate being a 6.95% growth rate.

DOCU’s rule-of-40 shows it is overvalued 

With DocuSign’s growth slowing, the management has turned to several strategies to boost the stock price. For example, the management is now actively buying back shares, a move that has brought its outstanding share count to 201.10 million, down from 205.32 million last year.

The share buybacks continued in the last quarter when the management repurchased stocks worth over $215 million, a big increase from the $172.7 million it bought in the same period last year.

Data compiled by SeekingAlpha shows that the company has a forward price-to-earnings ratio of 19, much lower than the five-year average of 62. 

However, the company’s rule-of-40 multiple, which is a common approach used to value companies in the SaaS industry, shows that it is not a cheap company. Its forward growth rate is 7.5%, while its EBITDA and net income margins are at 9.65% and 9.08%. This gives it a rule-of-40 metric of less than 20%, much lower than the ideal 40%.

DocuSign stock price technical analysis 

The daily timeframe chart shows that the DOCU stock price has been in a strong downward trend this year. It dropped from the November high of $107.75 to the current $71.

DOCU has stalled at the 61.8 Fibonacci Retracement level at $71.45 and has formed a descending channel.

It remains below the 50-day and 100-day Exponential Moving Averages (EMA), a sign that bears remain in control for now  

Therefore, the most likely outlook is where it continues falling, with the next key target being at $63.77, its lowest level this year and the lower side of the channel. A drop below that level will point to more downside, potentially to the support at $60.

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The S&P 500 Index has had a strong performance this year as it jumped to a record high several times. It has soared by 41% from its lowest level this year, and Wall Street analysts believe that the index and its ETFs, like SPY, VOO, and IVV have more upside in the coming years.

S&P 500 Index benefited from key tailwinds 

The S&P 500 Index soared this year as investors cheered several important tailwinds. 

The most important one was corporate earnings, which continued thriving this year. 

Data compiled by FactSet shows that constituents of the S&P 500 Index had strong earnings in the last quarter. The average earnings growth was worth 13%, which was higher than what analysts were expecting. It was the fourth consecutive quarter of earnings growth.

The S&P 500 Index also surged as the Federal Reserve started cutting interest rates. It has already slashed rates by 50 basis points, and analysts believe that this trend will continue in the final meeting of the year.

Additionally, the index and its ETFs recovered after Donald Trump implemented tariffs during the so-called Liberation Day. While the tariffs were stiff, the president and his team negotiated and brought most of them lower, with most of them coming in at 15%.

Companies have demonstrated resilience during this time, with many of them reporting strong earnings. For example, the GM stock price soared to a record high this week, even though it is one of the most affected.

Tariffs have also had a positive impact on the US economy, with estimates showing that they will help to reduce the public debt by over $4 trillion in the next decade.

Most importantly, the S&P 500 Index benefited from the ongoing AI tailwinds as top companies continued spending heavily. Indeed, a closer look at the top performers shows that most of them are companies in the AI industry, like Sandisk, Western Digital, Seagate, Micron, Palantir, and Lam Research.

Mergers and acquisitions have also returned, a trend that may continue in the coming year. Deals worth over $1 trillion have been announced recently, with Netflix being in talks with Warner Bros. Discovery. 

Some of the other large deals were the $48 billion buyout of Kenvue by Kimberly-Clark, the EA Sports buyout by a group of investors, and Union Pacific’s acquisition by Union Pacific.

Wall Street analysts are upbeat on US stocks

Experts believe that the stock market has more gains to go in 2026, with most of them anticipating a double-digit growth rate. 

If this happens, it means that it will be the seventh year of double-digit growth rates.

The average estimate among analysts is that the S&P 500 Index will jump from the current $6,857 to $7,500 in 2026.

This growth will be because of the upcoming interest rates by the Federal Reserve, which are expected to come down significantly next year. Trump has hinted that Kevin Hassett will be the next chairman, a notable thing since the two have similar views.

Earnings growth will also be resilient now that companies have adjusted to the new normal of Donald Trump’s tariffs. Also, analysts expect that the AI boom has more room to go.

Deutsche Bank analysts have an S&P 500 target of $8,000, while Morgan Stanley believes that the index will soar to $7,800.

UBS analysts have a target of $7,700, while JPMorgan, BNP Paribas, and Barclays see it rising above $7,500. In a recent statement, Tom Lee, the popular founder of FundStrat noted that the index has more upside.Still, there are potential risks, including the fact that the AI bubble may pop in 2026 and that the S&P 500 Index is not cheap.

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Nvidia stock price has moved sideways in the past few weeks as concerns about competition and growth continue. Still, technicals and its valuation metrics point to a resurgence in the coming weeks, potentially to a record high.

Nvidia stock price technicals points to a rebound 

The daily timeframe chart shows that the NVDA stock price has formed some notable bullish catalysts in the coming weeks.

It has remained above the 100-day Exponential Moving Average (EMA), a sign that bulls remain in control today.

The stock has formed a rising broadening wedge, which is commonly known as a megaphone pattern. It is now moved to the lower side of wedge pattern, a sign that it has started to bottom.

It is trading at the 23.6% Fibonacci Retracement level, while its oscillators like the Relative Strength Index (RSI) and the MACD have continued rising in the past few weeks.

Therefore, technicals suggest that the next key resistance level to watch will be the psychological level at $200. A move above that level will point to more upside, potentially to the all-time high of $212. 

However, the bullish outlook will become invalid if the stock moves below the lower side of the wedge pattern, which will point to more downside, potentially to the psychological level at $150.

Nvidia shares have become a bargain 

The recent Nvidia stock price pullback has been triggered by the rising risks of competition from American and Asian companies.

Most importantly, there are concerns that Google will become a major player in the GPU industry if it starts selling its chips to other companies, including the likes of Meta Platforms. 

OpenAI is also building its chips using Broadcom, a company whose market capitalization has jumped to over $1.7 trillion.

Other competition is coming from China, where companies like Alibaba and SMOC are building their own chips. Just today, Moore Threads, a Chinese competitor, soared by over 500% after going public.

However, these fears seem to be exaggerated as Nvidia has more years of experience in the industry, meaning that it may continue being the most dominant player in the industry. 

A good example of this is the fact that its growth has continued despite the soaring competition from AMD, which has developed GPUs that are almost as good as those made by Nvidia.

Nvidia stock price has also struggled as investors have remained concerned about the AI bubble and its circular investing approach, where it invests in companies that then use the money to buy its chips.

Still, the current data shows that Nvidia is doing well, with its revenue growth accelerating. Its most recent results showed that its revenue rose to over $55 billion, and the management believes that the fourth quarter will hit $65 billion.

Nvidia is also one of the most profitable companies in Wall Street, with its profit margins being 53%, higher than AMD’s 10% and Micron’s 23%. Palantir, a software maker, has a net profit margin of 28%.

Still, despite these numbers, Nvidia has a forward PE ratio of 38, much lower than the five-year average of 45%. It also has forward PEG ratio of 1.03, much lower than the sector median of 1.72%.

Nvidia has one of the best rule-of-40 metrics in Wall Street. It has a forward revenue growth of 65% and a net income margin of 53%, giving it a multiple of 118%. While the rule-of-40 largely applies to SaaS companies, Nvidia’s numbers show how strong it is today.

Therefore, Nvidia has numerous technical and fundamental catalysts that will likely help its stock recover and possibly blast past its all-time high.

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The JPMorgan Equity Premium Income (JEPI) ETF stock has done well this year as US shares have soared. It has soared to a record high of $57.50, up by ~21% from its lowest point this year. So, is the JEPI ETF a good buy or is the popular Vanguard S&P 500 ETF (VOO) better?

How the JEPI ETF works

JEPI is the biggest ‘boomer candy’ ETF with over $40 billion in assets under management (AUM). It is a blue-chip fund that aims to generate growth and income. 

It is an actively managed fund that uses two approaches. The management team invests in a basket of blue-chip companies, including popular names like Nvidia, Microsoft, and Google. It has 135 companies in its portfolio.

JEPI then uses the covered call approach to generate return. In this, the manager writes call options, which give it a right but not the obligation to buy the S&P 500 Index at a strike price before the expiry period. This options trade gives it a premium, which the fund distributes to investors every month. 

The dual approach ensures that the JEPI ETF stock rises when US equities are rising. It also makes it an income play, which explains why it has a dividend yield of 7.5%. 

However, the strategy has a major limitation, especially in a stock market bull run. In this period, the strike price is often passed, which limits the potential upside.

What is the VOO ETF?

The Vanguard S&P 500 ETF is a more straightforward fund in that it invests in the S&P 500 Index and is the biggest passive income ETF in the world. 

As a passive fund, VOO is much cheaper than JEPI in that it has an expense ratio of just 0.03%. This means that a $10,000 investment costs just $3 a year. JEPI has a ratio of 0.35%, meaning that a similar investment will cost $35. 

As a growth-focused fund, VOO has a low dividend yield of just 1.12%. In contrast, JEPI has a dividend yield of 7.50%, making it ideal for dividend investors.

VOO vs JEPI ETF: one is a better buy

VOO and JEPI ETFs have different goals. JEPI aims to provide a regular monthly income, which normally rises in periods of volatility. VOO, on the other hand, provides investors with a cheap approach to investing in the stock market. 

A closer look at the two funds shows that VOO is a better buy despite its lower yield. For example, JEPI’s total return in the last three years was 31%, while VOO has returned 78% in this period. 

The same has happened in the last 12 months as the VOO gained by 14.70%. JEPI rose by 3.86% in the same period. This year, JEPI is up by 7.75% against VOO’s 17.80%.

Historically, data shows that covered call ETFs underperform benchmark indices. For example, Nvidia stock has always done better than the 87% yielding NVDY. Similarly, the MSTR stock has lagged behind the 280% yielding MSTY ETF. 

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