After sprinting to record highs, it posted its sharpest drop in years this week as traders took profits and reset their positions. But big moves like that don’t kill a bull market; they clear the deck.

If the longer-term drivers – central bank buying, deficit worries, and a firm dollar trend that can turn – stay in place, the metal still has room. Pullbacks are simply the toll you pay on the highway.

That sets the stage for Barrick Mining (NYSE: B).

Barrick is a diversified operator, not a one-mine bet. It runs Tier One gold assets in Nevada, the Dominican Republic, Tanzania, and Congo, plus a growing copper arm in Zambia and a huge copper-gold project in Pakistan.

The company’s playbook is simple: Keep a strong balance sheet, push costs down, and fund the next wave of growth from internal cash rather than debt or dilutive deals.

Its latest numbers back that up. In the second quarter of 2025, revenue was $3.7 billion. Net earnings were $811 million, or $0.47 per share, with adjusted EPS also $0.47. Attributable EBITDA (earnings before interest, taxes, depreciation, and amortization) hit $1.69 billion with a 55% margin.

Free cash flow was $395 million even as Barrick stepped up spending at Lumwana (the copper mine in Zambia) and Reko Diq (the copper-gold project in Pakistan). The company ended the quarter with $4.8 billion in cash and a small net-cash position of $73 million. Shareholders got a $0.15 quarterly dividend – including a $0.05 enhancement tied to net cash – and $268 million of buybacks during the quarter.

Operations are trending the right way. Gold production rose 5% quarter over quarter. Production at Nevada Gold Mines increased 11% from the first quarter on better grades and throughput, while output jumped 28% in the Dominican Republic as plant upgrades took hold. Copper production climbed 34% as Lumwana improved mining rates and unit costs fell.

Now to the Value Meter breakdown.

On valuation, Barrick’s average EV/NAV is 1.64, versus a universe average of 3.79. That tells us the stock is cheaper than its peers, because you pay less for each dollar of net assets.

On cash efficiency, the company’s average FCF/NAV is 0.84%, versus 1.11% for its peers. That’s a notch worse, meaning Barrick turns assets into free cash a bit less efficiently than the average company in our universe right now.

But there’s more to the story here. On momentum of the cash engine, Barrick’s 12-quarter FCF growth rate is 54.50% versus 46.25% for its peers. That’s better, suggesting cash generation is trending faster than the pack.

What about the stock?

Shares have ripped from the mid-teens last winter to the low $30s now, with a brief spike toward the mid $30s as gold went vertical. (The recent dip tracks the metal’s cooldown more than any change to Barrick’s story.)

If bullion finds support and copper stays firm, Barrick’s blend of low-cost gold and expanding copper should keep free cash flow coming. The pipeline – including the ramp-up in the Dominican Republic, Reko Diq, and a “Super Pit Expansion” at Lumwana – adds real torque to 2026 through 2028 without stretching the balance sheet today.

So aside from the dip in gold prices, this is a quality operator priced below the peer pack with improving operations and a clean balance sheet. For investors who want leverage to the metal without betting the farm, Barrick still looks like the adult in the room.

The Value Meter rates Barrick Mining as “Slightly Undervalued.”

What stock would you like me to run through The Value Meter next? Post the ticker symbol(s) in the comments section below.

The post The Low-Cost Gold Play That Wall Street’s Missing appeared first on Wealthy Retirement.

A couple of weeks ago, I shared an article by Monument Traders Alliance’s Bryan Bottarelli about how September’s Fed meeting could be the biggest in decades.

Now that the meeting has passed, I’ve invited Bryan back to break down how he’s preparing for any potential volatility over the next few months.

– James Ogletree, Senior Managing Editor

CNBC polled 29 ‘professional economists’ about Fed Day.

I ignored them all and positioned for the one thing they didn’t consider: markets doing the opposite of expectations.

While Wall Street’s brightest minds were debating quarter vs half-point cuts…

I was laughing at a different number entirely.

94.7%.

That’s the probability that CME Fed Watch showed for a quarter-point cut.

When I see consensus that strong, my contrarian radar starts screaming.

Because here’s what those 29 experts missed…

Fed Day isn’t about being right on direction.

It’s about being positioned for chaos.

The Consensus Was Suffocating

CNBC’s survey revealed those professionals expected political pressure on Fed independence, inflation concerns, higher unemployment, and slower growth.

All very neat predictions about policy implications.

Meanwhile, I was watching something else entirely: the political warfare brewing between this administration and Jerome Powell.

Three months of name-calling. Court battles over Fed governors. Lisa Cook getting blocked from being fired right before the meeting.

You think that doesn’t create unusual market dynamics?

My Contrarian Setup

That’s why I positioned with a strangle – buying both calls and puts on SPY with strikes around 661 call and 660 put. Total cost: just under $6.

My target? A 1% move in either direction. The position would profit as long as the market moved more than my premium cost.

While the experts debated policy, I was focused on how the market would react to whatever Powell said.

The Real Fed Day Strategy

Position the day before. I sent out the trade at 2:30 Central, 30 minutes before close. Get positioned when you can think clearly, not when Powell’s talking.

Target 1% moves. Anything over 1% up or down on SPY, and the strangle position is profitable. It’s not about hitting home runs – it’s about consistent profitability on volatility.

Use zero-day options strategically. These become precision tools for capturing short-term volatility around known catalysts.

What The Experts Always Miss

Those 29 economists were trying to predict the future. I was positioned to profit from uncertainty.

The difference? When markets do weird things around Fed announcements – which happens more often than anyone wants to admit – I’m positioned to profit. They’re left scrambling to explain why their predictions didn’t match market reality.

YOUR ACTION PLAN

The Fed delivered exactly what 94.7% of the market expected.

But here’s what those 29 economists missed…

This rate cut just set up the next 90 days for PEAK volatility.

And volatility is where the real money gets made.

The zero-day strangle I showed you? That’s just the beginning.

Because when markets get chaotic (and they’re about to), having a systematic approach to profit from that chaos becomes everything.

The Fed Shockwave is Coming

The political warfare between Powell and this administration isn’t over.

The following 90 days could deliver the most volatile three months we’ve seen in years.

Most traders will panic when markets swing wild.

Smart traders will position themselves to profit from those swings.

The post Did the Fed Just Spark 90 Days of Chaos? appeared first on Wealthy Retirement.

Will it reduce rates? If so, by how much? How cautious will Fed Chair Jerome Powell be when he addresses the media? How will the markets react?

The answers to all of these crucial questions are less than 24 hours away.

To help cut through the noise, I’ve asked our top two experts here in Wealthy Retirement – Chief Income Strategist Marc Lichtenfeld and Director of Trading Anthony Summers – two simple questions: What should the Fed do… and what will it do?

What should the Fed do?

Marc: I’ve mentioned several times in the past that the Fed has two mandates. The first is to keep inflation in check. The second is to maintain full employment.

While President Trump has railed against Powell to lower interest rates, Powell has defied him, saying he wouldn’t do so until the data showed that rate cuts are warranted.

They now are.

Ask anyone whether inflation is under control, and they’ll tell you no. The consumer price index’s 0.4% rise in August and 2.9% increase year over year confirm that.

Jobs are deteriorating too. The Bureau of Labor Statistics said last Tuesday that there were 911,000 fewer nonfarm payroll jobs than previously reported. For the week ending September 6, there were 263,000 new unemployment claims, the most in four years.

A 25-basis-point rate cut to a range of 4% to 4.25% seems appropriate at this point.

Anthony: The Fed should cut by a quarter-point, or 25 basis points.

On the surface, the job market is softening – though there’s data that suggests the slowdown is somewhat concentrated in certain sectors – and overall economic growth looks shaky. But while inflation isn’t raging anymore, it’s not low either.

In this mix, tight policy could be doing more harm than good. A small cut supports hiring and cash flow for Main Street. It also offsets tariff drag that can slow demand.

All the Fed really needs to do right now is help the job market while keeping a close eye on prices. If inflation flares, pause. If hiring continues to weaken, cut once more.

Keep the mission simple, yet steady. That approach reduces recession risk without inviting a price spiral. It also keeps credit markets open for households and small firms.

What will the Fed do?

Marc: I suspect the Fed will cut rates by 25 basis points. That’s not going to suddenly spark hiring, but it does put America on notice that rates are likely going to continue coming down. It’s a warning shot across the bow.

A 50-basis-point cut at this point would feel alarmist. If inflation was abnormally low, 50 basis points might make sense, but with the prices of everything from rent to food to TV subscriptions going higher (regardless of what the government data shows), not to mention the effect of tariffs, lowering rates too quickly could result in rip-roaring inflation.

The Fed has a balancing act to conduct. It needs to lower rates enough to fuel jobs, but not so much that it fans the inflation flames. It’s not an easy thing to manage.

Anthony: I think the Fed will likely do what it should do.

The most probable move is a 25-basis-point cut, but officials will stress that future actions will be determined “meeting by meeting.” They will nod to sticky inflation but frame it as manageable, pointing to softer hiring and cooler growth as the bigger risks today.

That opens the door to another cut if jobs data stays weak. They will not pre-commit to back-to-back moves – nor should they – but they will not rule it out either.

Tariff concerns will get a mention as a headwind. The Fed will avoid big promises about next year’s fiscal plans; that is outside its lane. So I’d expect a cautious tone and a split vote or two.

Markets will hear “one cut now, maybe more to come.” If the next jobs report disappoints, odds are the Fed will follow up with a cut. If inflation pops higher, the Fed will likely pause.

Marc and Anthony both expect a quarter-point cut tomorrow, but not everyone sees it the same way.

A columnist in the Financial Times argued last week that a rate cut would be an “alarmist reflex” and that “there is an equally strong case for a rate increase.”

On the other hand, British bank Standard Chartered supports a sizable reduction, writing that the slowing job market “has paved the way for a ‘catch-up’ 50-basis-point rate cut.”

However, the majority of economists agree with Marc and Anthony that a 25-basis-point reduction is both the most prudent and the most likely outcome.

Will they be right? We’ll know in less than 24 hours.

What do you think the Fed should do? More importantly, what will it do? Are you excited? Are you concerned? Let us know your thoughts in the comments below!

The post What the Fed Should (and Will) Do Next appeared first on Wealthy Retirement.

Right now, markets are pricing in more than a 90% chance that Fed Chairman Jerome Powell will announce the first interest rate cut of 2025 this coming Wednesday.

This could trigger shockwaves across the market, and our colleagues at Monument Traders Alliance will be getting investors prepared for what they believe could be a “dream scenario” of buy opportunities.

Click here to learn about their upcoming FREE “Trump vs. Powell FOMC Watch Party” event.

– James Ogletree, Senior Managing Editor

We’re less than 2 weeks away from what I believe is the biggest FOMC event in decades.

I’ve been talking about it for the last few weeks, and for good reason.

The amount at stake is incredible, and I know that sounds like a bold statement.

But in all my years of trading, I’ve never seen a scenario quite like this.

The tensions between President Donald Trump and Fed Reserve Chairman Jerome Powell are about to boil over… and I believe an aftershock could be in play.

Here are 3 different scenarios I could see playing out…

FOMC Scenario 1: Powell Kisses Trump’s Ring and Markets Move Up

In this scenario, Powell does exactly what Trump has been wanting him to do.

Powell delivers the news that the Federal Reserve is cutting interest rates by 25 bps, bringing the target range to 4-4.25%.

But Powell doesn’t stop there… he takes it a step further.

He goes as far as to say that this is the start of a well-calibrated easing cycle. Meaning multiple rate cuts are on the horizon.

Trump is giddy with enthusiasm. He takes to Truth Social and announces “this is the start of America’s next big economic boom.”

The market reacts to the upside.

Sectors like tech, real estate, consumer, and utilities spike.

Lower borrowing costs also light up growth expectations.

Overall, it sends a signal that yes, this is the start of an easing cycle and not a recession panic.

FOMC Scenario 2: Powell Tells Trump to “Shove it” and Markets Sell Off

Instead of playing nice like the first scenario, Powell hits Trump with a haymaker of his own.

He knows Trump is going to fire him anyway. So why not go out like a gangster and tell Trump “no rate cuts for you” before sailing off into the sunset?

In this case, Powell says he’s not cutting rates, citing that inflation isn’t under control.

Investors feel blindsided. All that talk of an almost certain rate cut and a soft landing is dashed.

Because of this unexpected move, equities react to the downside.

Tech and real estate stocks get hammered fast. Traders dump growth stocks, and long-term yields spike higher as recession fears kick in.

Powell walks out of the burning building without bothering to look at the destruction.

FOMC Scenario 3: Powell Walks the Tightrope and Markets Fluctuate

In this last scenario, Powell doesn’t cave to Trump or get overly hawkish. Instead, he meets Trump halfway.

He announces rate cuts of 25 bps, agreeing that the recent low jobs data is a viable reason for the decision. But he stops short of saying “this is the start of an easing cycle with multiple rate cuts.”

Powell’s tone will be key here.

How cautious does he sound? Is he being too ambiguous?

If he is, stocks might cheer the move in the short run. But growth-heavy sectors like tech and real estate could see wild swings over the long term amid the uncertainty.

Why It Matters for You

Look, while it’s fun to try and predict what will happen during the FOMC meeting, the truth is your money is too valuable to get caught in the wash of all this political drama.

Forget about whose side you’re on for a second…

The stock market HATES uncertainty, and when there’s an all-out verbal civil war happening with President Trump and the active Fed Chair – the probability of a severe aftershock is in play.

So far, we haven’t seen much of a market reaction to this upcoming event. But that could change instantly depending on what happens Sept. 17.

But the beauty is that if I’m wrong and there’s no major reaction, I’ll have research that aims to make you money no matter what.

I’ll be going over more details below on how you can get prepared.

YOUR ACTION PLAN

No matter what happens on Sept. 17, we’ll be ready to help you navigate the aftershock. Next Wednesday, my partner Karim Rahemtulla and I are going live at 1:15 p.m. for our “Trump vs. Powell FOMC Watch Party.”

We’ll talk about the effects the FOMC announcement will have on your money in the weeks and months to come. We’ll also show you how this announcement could set up a “dream scenario” for traders like you.

The event is completely free.

Click here to sign up today.

The post The Biggest Fed Meeting in Decades appeared first on Wealthy Retirement.

The market jumped as a result.

Investors should tread carefully – not because valuations are at historically high levels (though that is true), but because inflation is likely to burn hot if the Fed lowers rates.

Powell himself said the Fed has to manage both employment, which continues to stagnate, and inflation, which continues to rise. A rate cut only adds gasoline to the inflation fire.

In January, in the Forecast Issue of my newsletter, The Oxford Income Letter, I predicted that inflation would spike in 2025. A Fed rate cut would likely make that forecast a slam dunk.

There are not many investments that keep up with inflation – particularly ones that generate income.

Fixed income doesn’t do the trick. If you’re earning $1,000 a year in fixed income and prices rise 5%, something that used to cost $1,000 last year now costs $1,050. But your $1,000 in fixed income interest doesn’t budge, so you have a $50 hole to make up.

One of the only ways to combat inflation is with dividend growth stocks.

These companies pay dividends (usually quarterly) and raise their dividends each year. If you have a stock whose dividend is hiked by a meaningful amount, you could actually increase your buying power, even in periods of rising inflation.

For example, Civista Bancshares (Nasdaq: CIVB), a microcap bank based in Ohio, has been around since 1884. Today, the stock yields 3.2%, but the company has raised its dividend every year since 2012 at a compound annual growth rate of over 13%. The most recent dividend increase was lower at 6.3%, but that is still above the current inflation rate, so it still boosted shareholders’ buying power.

Chevron (NYSE: CVX) is another solid dividend growth stock. The oil and gas giant has a current yield of 4.3% and has raised its dividend every year for 36 years.

The most recent increase was 5%, which as of now is higher than inflation.

Over the past 50 years, companies that raised or initiated a dividend outperformed the equal-weighted S&P 500 by nearly 3.5 times. They beat non-dividend payers by more than 1,700%.

Furthermore, when the spit hits the fan, dividend growers are safer than the overall market. The S&P 500 Dividend Aristocrats Index, which tracks companies in the S&P 500 that have raised their dividends every year for at least 25 years, is 10% less volatile than the broad market.

In other words, during a correction, the Aristocrats should decline less than other stocks.

Rates are coming down, and inflation is going higher. Investors should look toward dividend growth stocks to keep up with inflation – or else risk seeing their purchasing power be reduced.

The post Rate Cuts Are Coming… and So Is Inflation appeared first on Wealthy Retirement.

Shah was one of the only people who foresaw Trump’s impact on the market back in 2016… so when he talks, I listen.

To read more of Shah’s recent content, click here.

– James Ogletree, Managing Editor

When it comes to trading and investing, elections don’t just elect leaders…

They ignite or douse market trends.

That’s why Wall Street wasn’t just watching the presidential election… It was bracing for what could be another seismic shift.

The last time Trump rode to victory in 2016, markets trembled, then soared. That election night saw Dow futures plunge 800 points as traders caught their breath, only to witness a reversal that kicked off a remarkable bull run. The Dow soared 56% through 2019.

Now, with Trump set to begin his second term, smart money is positioning for what could be another wild ride.

The Deregulation Spark

Trump’s first term lit a fire under the financial sector by slashing through post-2008 red tape, particularly the constraints of Dodd-Frank.

Wall Street giants like JPMorgan, Goldman Sachs, and Citigroup found themselves unchained from strict capital requirements. That unleashed a wave of lending and trading that sent their stocks skyward.

The proof was in the profits – banks posted record earnings as compliance costs dropped and lending flexibility soared.

Trump’s victory could reignite this deregulatory flame and lead to harder lobbying against the Basel IV requirements that are looming over banks.

Trump’s pro-market stance could delay or weaken the enforcement of these restrictions, further boosting financial stocks.

With more freedom to deploy capital, banks could play a larger role in propelling the market forward. That money would energize sectors across the economy and give investors another opportunity to benefit from the financial sector’s growth.

Crypto’s Wild Ride

The crypto market’s explosive journey during Trump’s first term – including Bitcoin’s rise from $700 to a staggering $30,000 – could be just a preview of what’s ahead.

While Trump once eyed crypto with skepticism, insiders hint at a dramatic shift in stance. His second term could finally deliver what institutional investors crave: clear rules of the game.

Policies that prioritize innovation and economic growth could mean a friendlier regulatory environment for both coins and blockchain technology, fostering innovation while allowing assets like Bitcoin, Ethereum, and new digital tokens to flourish.

With regulatory clarity, the floodgates could open. Bitcoin, Ethereum, and the entire digital asset space would catch fire. This isn’t just about price moves – it’s about legitimizing an entire asset class that’s been waiting in the wings.

The real opportunity might lie in the infrastructure plays: exchanges, custody providers, and blockchain technology firms that would benefit from institutional money flooding in.

America’s Industrial Revival

Trump’s previous deregulation blitz unleashed American energy producers, sending production through the roof and transforming the U.S. into an energy powerhouse.

The policies he enacts during his second term could supercharge this sector again, while his “America First” battle cry could ignite a boom across…

• Oil and gas exploration, with permits fast-tracked and production barriers lowered
• Massive infrastructure projects, from highways to power grids
• Construction and materials firms poised for government contracts
• American manufacturing muscle, especially in strategic industries
• Transport and logistics innovation, including port expansions and rail upgrades.

This isn’t just about building bridges. It’s about rebuilding American industrial might, creating a goldmine of opportunities from raw materials to cutting-edge construction tech.

Watch for companies with strong government contracts and domestic supply chains to lead the charge.

Playing the Fed and Inflation’s Wild Card

Trump’s pro-growth agenda and push for easy money helped fuel his first term’s market rally.

His second term could influence the Fed’s stance on interest rates and inflation control. If he pursues a similar economic agenda, focusing on growth through lower taxes and deregulation, the Fed might be encouraged to maintain a more accommodative monetary policy. Lower interest rates could benefit sectors from tech to housing and keep consumers spending.

But savvy investors need to watch for inflation’s warning signs. When growth policies collide with deregulation and heavy spending, precious metals and commodities often become the smart money’s hedge of choice.

Gold, silver, and industrial metals could shine bright in this scenario, while real estate typically thrives in inflationary times.

Where to Place Your Bets

Trump’s return to the White House could create a perfect storm for several sectors, just as his 2016 victory did. These five sectors stand ready to explode:

• Financials: Banks unleashed from regulatory chains could see their stocks soar. Looser capital requirements and regulatory ease would allow for more lending, trading, and investment freedom.
• Crypto: Clear rules could trigger an institutional feeding frenzy, benefiting both coins and crypto infrastructure plays.
• Energy: American oil and gas producers could roar back to life thanks to deregulation, especially those with strong domestic operations.
• Infrastructure: “America First” means a building boom… with opportunities across the entire construction and materials supply chain.
• Commodities: Growth and spending could ignite raw materials, while inflation fears could drive precious metals higher.

Trump’s victory has the potential to unleash waves of opportunity across multiple sectors… but not without volatility.

As the markets adjust, investors with a sharp eye on Trump’s policy track record and the evolving financial landscape will be positioned to capitalize on the next wave.

Wall Street isn’t just watching… it’s waiting. And a Trump victory could be the spark that ignites another historic bull run.

The post 5 Sectors Set to Soar During Trump’s Second Term appeared first on Wealthy Retirement.

Today, I’m sharing Director of Trading Anthony Summers’ article from the December issue of The Oxford Income Letter about where the best value will likely be found in 2025.

I want to hear your thoughts as well – do you have your eye on any particular stocks or sectors this year? Let me know in the comments below.

– James Ogletree, Managing Editor

Buffett is at it again…

The Oracle of Omaha has accumulated his largest cash hoard ever, an astounding $325 billion in cash.

What does he know that most investors don’t?

Unlike many of the fearmongers in the media, I don’t take this as a sign that Buffett is preparing for an imminent crash.

He simply knows two inconvenient truths:

1. The ample rewards of stock investing must be balanced against the risks.
2. The risk-reward balance is looking less and less attractive.

You see, there’s this thing called the “equity risk premium.” It’s basically the extra return you get for investing in stocks instead of safer investments like Treasury bonds.

When you invest in stocks, you expect to earn more than you would from government bonds because you’re taking on more risk. But today, that extra return is getting squeezed to the smallest levels since the early 2000s.

This is a sign that the stock market is becoming more and more overpriced – particularly large cap stocks, whose valuations have gotten stretched to concerning levels.

The S&P 500 is currently trading at 25 times forward earnings. That’s so far above the historical average that valuations would need to drop by about 3% annually for the next decade just to get back to normal.

Here’s the good news, though: There’s still value to be found for those who are willing to do a little digging.

Small cap stocks, especially those with strong value characteristics, are trading at some of their best valuations relative to large caps in 25 years. While everyone’s been chasing the same handful of megacap tech names, these smaller companies have been steadily building value.

History also shows us that interest rate cuts often lead to significant outperformance for small caps.

Dating back to 1957, small caps have returned an average of about 11% in the first three months of rate-cutting cycles, 19% in the first six months, and nearly 29% in the first year.

The gains after periods of underperformance are even more striking.

When small cap stocks have posted meager returns over a three-year period (as they did from 2021 to now), the bounce back has been remarkable.

According to market data going back to 1982, following these disappointing periods, small caps have gone up over the next three years 99% of the time.

Small caps are also showing stronger projected earnings growth than their large cap counterparts for both this year and next. Combine that with their current valuation discount and the historical data, and you’ve got a compelling opportunity.

But here’s the catch: You can’t just buy any small cap stock.

The key is focusing on quality companies with strong balance sheets, solid cash flows, and durable competitive advantages – in other words, true value stocks. These are where the risk-reward balance makes the most sense right now.

It Pays to Think Small

All the big money managers seem to agree that the broader market looks expensive. BlackRock, Vanguard, Goldman Sachs, and others are all predicting below-average returns for U.S. stocks in the coming years.

Factoring in dividends, buybacks, earnings growth, and valuations, the current consensus is that the S&P 500 will deliver only about 4% annually over the next decade. That’s barely better than what risk-free Treasury bills are offering.

In a market where risk premiums are shrinking and the Oracle of Omaha himself is stockpiling cash, seeking genuine value isn’t just smart – it’s essential. And right now, small cap value stocks might be one of the few places left to find it.

After all, when giants like Buffett are raising cash and valuations are stretched, it pays to look where others aren’t. While everyone else is still scrambling to buy yesterday’s winners, the smart money is quietly positioning itself in small cap value stocks.

The post Where the Value Will Be Found in 2025 appeared first on Wealthy Retirement.

The last seven days have been a perfect storm of market news…

First, there was Donald Trump’s surprisingly wide margin of victory in the presidential election…

Then the market soared the next day, marking its largest single-day move in two years…

And the day after that, the Federal Reserve announced a 25-basis-point interest rate cut.

I don’t know about you, but my head is spinning!

That’s why we had Chief Income Strategist Marc Lichtenfeld, Chief Investment Strategist Alexander Green, and Publisher Rachel Gearhart in The Oxford Clubroom this morning to make sense of it all.

Here’s just some of what they covered:

• The sectors that are set to thrive during Trump’s second term
• Areas of the market Marc and Alex will likely avoid for the foreseeable future
• The Fed’s latest interest rate decision and whether it’s cutting too much too fast
• Whether the post-election rally could continue
• How Marc and Alex plan to adjust their strategies after Trump takes office
• The best “Trump stocks” to watch right now
• How Trump’s win may impact small cap stocks
• And more!

I rarely send full Clubroom sessions in Wealthy Retirement, but I felt this one was too important not to share.

Click the image above to watch the full session!

The post What Another Trump Term Means for the Market appeared first on Wealthy Retirement.

I always enjoy listening to Jay Hatfield, the CEO of Infrastructure Capital Advisors, discuss the market and economy. He usually offers a point of view that you won’t hear in most other places – and he has data to back it up.

That’s just one of the reasons I was excited to join him last week for his monthly “Market & Economic Outlook” webinar.

During our conversation, I elaborated on why I believe the Fed should not have cut rates, the reason they absolutely should not do so again, and why additional rate cuts would lead to heightened inflation next year. Jay and I also took questions from viewers who tuned in for the live call.

I am a big fan of Jay’s work. InfraCap is an Oxford Club Pillar One Advisor, and I recommend one of InfraCap’s ETFs in The Oxford Income Letter. In August, Jay was also my first-ever guest on Oxford Income Live, my monthly interactive video call with Oxford Income Letter subscribers.

Check out our conversation by clicking the image above, and leave a comment below to let me know what you think. (Jay opened the call by updating his members on some of InfraCap’s research regarding the market, the election, the Fed, and more. My presentation begins at the 11:17 mark, followed by the Q&A portion at the end.)

The post Fed Rate Cut Sets Stage for More Inflation appeared first on Wealthy Retirement.

So, if we do enter a rate-cutting environment, what stocks are likely to do well?

Here are the top three sectors I expect to outperform during this new era.

1. Real Estate Investment Trusts

Real estate investment trusts, or REITs, are companies that buy real estate properties and rent them out to tenants. But these businesses don’t just buy houses or offices. They also own retail centers, healthcare facilities… even shelf space in data centers.

A stock that I’ve held in the Oxford Income Letter portfolio for a long time – and that I still recommend – is Four Corners Property Trust (NYSE: FCPT).

A former spinoff from Darden Restaurants (NYSE: DRI), Four Corners owns a ton of restaurant real estate, much of which it leases to Darden eateries. However, the company has expanded significantly in recent years, now holding properties in auto service, medical retail, and other retail as well.

Four Corners’ adjusted funds from operations, which is the measure of cash flow used by REITs, has been steadily rising, enabling the company to hike its dividend for seven years in a row. The stock now pays a 4.6% (and growing) yield.

2. Homebuilders

There are not enough houses to meet demand in the U.S. The shortfall is staggering. It is estimated that we would need 7 million new homes in order to catch up with demand.

And demand could soon increase even more. As interest rates fall, mortgages will become more affordable. If the 30-year fixed rate mortgage (which is currently averaging about 6.3% nationwide) dips below 6%, I believe we’ll see a rush of new homebuyers – especially if Vice President Kamala Harris wins the presidency.

One of Harris’ campaign promises is a $25,000 subsidy to assist new homebuyers with their down payments and make homeownership more affordable.

So demand is set to increase strongly, while supply is still tight.

I particularly like homebuilders that are catering to first-time buyers, as first-time buyers will likely be the most ready to make the leap to a new home in the coming year.

Century Communities (NYSE: CCS) focuses on the entry-level market. In the company’s own words, this allows it to “target the broadest potential pool of customers.”

Century had a down year in 2023, which is not entirely surprising given that interest rates were rising throughout the past two years. This year, however, the company’s numbers have rebounded.

Revenue in the first half of the year grew by 24% over last year, while earnings grew 75%. Wall Street predicts robust 15% earnings growth in 2025.

The stock trades at just 10 times earnings – well below the sector median of 14.6.

It also pays a small dividend.

3. Utilities

Utilities tend to perform well when rates fall. This is because they borrow a lot of money, and falling rates mean lower interest expenses.

The chart below shows the inverse relationship between interest rates (as measured by the 10-year Treasury yield) and the performance of the S&P 500 Utilities index.

Utilities’ strong dividend yields also become more appealing as rates decline, because low rates make it more difficult to find meaningful yields elsewhere.

Duke Energy (NYSE: DUK) is based in North Carolina and delivers power to 8.4 million customers in seven states. It has one of the largest electricity transmission systems in the country.

Excluding the pandemic year of 2020, revenue has been steadily growing since 2018. This year, profits are on pace to be the highest they’ve been in at least a decade.

This is a very well-run company that sports a 3.5% yield.

Generally speaking, falling rates are good for the stock market, and I expect these sectors and individual stocks to do particularly well.

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