Wealth Signals
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Sell to Exit Amazon (Nasdaq: AMZN) and Skyline Champion (NYSE: SKY)
On June 9, we recommended purchasing the shares of internet infrastructure giant Amazon (Nasdaq: AMZN), based on the growth of its cloud-computing business. And on June 27, we recommended purchasing the shares of homebuilder Skyline Champion (NYSE: SKY), due to the lack of existing home inventory and the rising demand for new homes. However, since
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Stop Alert: Sell ZROZ
On May 17, we recommended purchasing the shares of the PIMCO 25+ Year Zero Coupon U.S. Treasury Fund (NYSE: ZROZ). At the time, we believed the Federal Reserve was almost finished raising interest rates. But since then, the central bank has increased the federal funds rates again, from 5.25% to 5.50%. Investors now expect that the central bank isn’t finished raising rates – and that’s pressuring the price of ZROZ shares.
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Inflation’s About to Rise Again… But Don’t Panic
Inflation headwinds could increase as we head into the end of the year, weighing on investor sentiment. But the price growth picture could turn the corner in the early part of 2024, improving the outlook for stocks and bonds...
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Wall Street’s Worried About Rising Yields (But We’re Not)
We understand why momentum investors are shorting bonds, but we don’t necessarily agree with their take. The Federal Reserve must be overly cautious, telegraphing that interest rates may have further to rise. But we believe the rate hike cycle is close to finished, if not already done. In July 1974, Federal Reserve Chairman Arthur Burns
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Dollar General Covered Call Update
On July 13, we recommended that subscribers sell the Dollar General (DG) August 18, 2023, expiration $170 calls (ticker: DG230818C00170000) at $4 or better, against our long recommendation in the common stock. The share price closed at $162.99 on August 18 (Friday). That’s below the $170 strike price – which means that the call option we recommended selling expired