CME Group IncCMECOMMENTJul 10, 2019Stock price when the opinion was issued
As of Jun 10, 2026. Market Open.
He chose to own this instead of owning gold, silver, or other commodities. You get double the return, with 1/3 the risk. Gets paid on both sides of deals. Capex is very low, so they pay a special dividend at the end of the year on top of their growing dividend.
Not just commodities. Also interest rates, currencies, and anything that can be traded. After January 20, volatility in the market is expected, which means more buying and selling of options and futures. Yield is 2%.
(Analysts’ price target is $245.42)
One of the largest exchanges in the world. Good for long term investors as has steady income streams. Futures and derivatives products very profitable (exclusive ownership of futures). Growth in international market and data of users (electronic gold). High barrier to entry also makes for a good business.
Time to move out of US banks? BAC-N lots of levers to earn money. It trades a little higher than book value. The valuation is okay, but is trading fair value. He would not be compelled to buy at time. He would roll this position into holding the exchanges -- like CME-N