Dimon: Inflation isn’t going away easily

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JOIN OUR FREE LIVE TRADING SESSION!]( Hello investor, Dimon: Inflation isn’t going away easily The Dow Jones briefly hit the 40,000 milestone yesterday before falling to finish the day in red. There is a common adage on Wall Street that rounded numbers can lead to a bigger rally. That number can also represent a resistance or support level. The question is whether 40,000 will be the new resistance or support line from now on. - “Breaking the 40,000 barrier is a big psychological boost for the bulls as round numbers hold special significance in people’s hearts and minds,” said Chris Zaccarelli at Independent Advisor Alliance. - “Markets are now headed into ‘overvalued territory,’ so it’s prudent to dollar-cost average and be more discerning when investing in equities.” The “soft landing” thesis has been the driving force behind the recent rally. Corporate earnings are strong. The labor market is robust. Inflation fell in the most recent reading. - “The market is showing more and more confidence in a genuine soft landing or even no landing scenario where overall economic growth in the US continues to stay solid,” said Lisa Shalett, chief investment officer at Morgan Stanley Wealth Management. - “It makes sense that a broader group of companies, even those that are more cyclical in areas like industrials, materials and energy can do well.” What’s more, analysts boosted profit outlook for companies for the current quarter at the biggest pace in two years. It indicated that Wall Street believes that a profit recession is over. The profit is forecasted to grow 7.1% this quarter and accelerate to 9.3% next quarter. (Source: Bloomberg) Federal Reserve officials, however, haven’t changed their tone on interest rate cuts. Three officials said rates should remain unchanged — despite the recent promising inflation reading. The consensus for Cleveland Fed President Loretta Mester, New York Fed President John Williams and Richmond Fed President Thomas Barkin is that it will take longer for inflation to cool down to the 2% target level. JPMorgan Chase CEO Jamie Dimon argues that inflation won’t come down as quickly as Wall Street expects. Why? Due to several factors: costs to fund the green economy, re-militarization, infrastructure spending, trade disputes and large fiscal deficits. the green economy, re-militarization, infrastructure spending, trade disputes and large fiscal deficits. - “There are a lot of inflationary forces in front of us,” Dimon said. “The underlying inflation may not go away the way people expect it to.” Consumers LOVE this company’s products, making it a potential tenbagger Today’s Stock Pick: SharkNinja (SN) I am sure that you’ve heard of Shark or Ninja. They are some of the most intensely-loved (and highly-trusted) brands in the country. Consumers simply trust this brand. Whenever they say, “I got a Ninja blender,” friends nod their heads in approval. Anything by Ninja is sure to be high-quality. (Photo: SharkNinja) More importantly, SharkNinja creates high-quality products at accessible prices. Sure enough, it is part of the company’s secret sauce. - Speed: First to market with disruptive innovations - Performance: High-performance products that exceed expectations - Quality: 5-star quality product experience - Value: Accessible prices for incredible value Many of your friends would agree with these four values, right? That speaks volume of SharkNinja’s ability to execute its vision. (Source: SharkNinja) SharkNinja boasts 800+ cross-functional engineers and designers to fuel innovations. Because they are spreaded around the world, it leads to 24/7 global innovation cycle. It is always business hours somewhere. When the USA is closed, Southeast Asia opens up. That makes the cycle spin faster. As a result, the company holds over 4,500 issued patents and pending patent applications in force globally. Before they release a product, it goes through rigorous testing phase to make sure it exceeds expectations. And they analyze consumers’ interactions with small home appliances and customer reviews to come up with new products. (Source: SharkNinja) All of this lead to some of the greatest growth stories in the stock market. The Shark side of business entered 6 new product sub-categories in the last 3 years, which is nearly half of what it had before 2019. As for Ninja, it also entered 10 sub-categories in the same period for a current total of 18. Both brands has just over $2 billion in net sales apiece. (Source: SharkNinja) The company has built a beautiful machine. Its marketing creates demand through national TV commercials and infomercial, digital & streaming TV, paid social & search, press & influencer and affiliates & promos. And they are virtually everywhere to fulfill demand through brick-and-mortar retail, online retail, D2C and international. (Source: SharkNinja) In the graphic below, you can see the market share for the United States. Of all categories, it increased market share since 2020. You can also see the insane market share it holds. It owns lots of categories. (Source: SharkNinja) It has also expanded its presence around the globe. The UK holds 19.7% of its net sales. The rest of the countries holds just 9.3%. Meaning? The company has a plenty of growth runaway to keep growing over the next few years. (Source: SharkNinja) Its net sales grew steadily by 20% CAGR from 2008 to 2023. That is a phenomenal growth rate which is a perfect ingredient for a mosnter compounding stock. (Source: SharkNinja) Lastly, the company expects to grow its adjusted sales at a modest pace of 7% to 9% this year. The adjusted EBITDA is projected at 11% to 15%. (Source: SharkNinja) Bottom line: SharkNinja looks like a stock that is going to keep growing for many years ahead. Its formula is marvelous — superior products + powerful marketing engine. Watch out for this stock. It could turn into a tenbagger.   [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!](     © All Rights Reserved, Trade Alliance [Unsubscribe]( | [Manage Preferences](