Federal Reserve policymakers have signaled they could raise interest rates when they meet on July 25-26. Short sellers are wagering more rate hikes will hurt retailers like Dollar General. So, we want to use an income-generating strategy to lower our cost base and increase our return potential.
The bond we’ll introduce today is trading at a 16% discount to par. The parent company was extremely profitable until the pandemic derailed its business. Now, three years removed from the pandemic, the company is turning a corner and on its way to becoming extremely profitable once again.
Every spring I hear the talking heads in the financial media utter the same phrase… Sell in May and go away! What they’re referring to is an old adage telling investors to sell their stocks ahead of the summer and reinvest in the fall. And it’s some of the worst advice ever.
Our proprietary indicators tell us inflation should fall even more in the months ahead. And fading cost growth means the Federal Reserve will soon be able to stop raising interest rates.
The U.S. housing market faces the prospect of a decade-long supply crunch. Today, we’ll introduce our next play on America’s housing shortage, and one of the most capital efficient business models we’ve come across.
CNBC is hyping impending economic doom. All the negativity has caused everyday investors to seek the safety of money-market funds, pushing those assets to a new record. When all that cash starts chasing stock market returns, the S&P 500 is going to see an even bigger rally.
The auto lending bubble is popping as more Americans are unable to pay their car loans. The tightening credit conditions that are weighing on subprime auto borrowers signal danger for the far larger corporate and government debt markets.
Business sentiment in Germany has worsened considerably. Inflation is weighing on demand. Weakness in the manufacturing sector is now spilling over to the services sector. The erosion in German economic confidence points to bigger problems for Europe.