Trade Call: Constellation Energy Bounce Amid Recession Fears

2 months ago

Ling

"For example, in the August selloff of 2024, this is an example because it's well recorded. And that was Constellation Energy, which is a utility company that uh powers data centers. And I wrote investors forgot about AI data centers, clean energy transition because we're going into a recession. I hope it continues. That was not my mindset two years ago. My mindset was, 'Oh, we're going into recession. What stocks will do best in a recession? How can I buy put options to protect my portfolio against a recession?' I'm like, 'Now we're going into recession.' Okay, good news. What's going to come after the recession? How can I make the most amount of money after the recession? Buying something that people were loving a few months ago, but now they forgot about it because all they can pay attention to is the short term. So, I bought CEG at 167. The stock went up to $400 this year and now trading at $350. That's an example."

Ling illustrates an actionable trade by discussing his Constellation Energy (CEG) move during the August selloff, where he purchased CEG at 167. He emphasizes that while many investors simply dollar cost average, identifying true bargains is key. The example underscores his approach of waiting for significant selloffs to deploy cash, expecting strong recovery potential in a recession scenario.

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