Today is a wild card on Wall Street

Earn While You Learn! ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!]( Hello investor, Today is a wild card on Wall Street Today’s trading is going to be a wild card. President Joe Biden announced that he was dropping out from the presidential election (and endorsing Vice President Kamala Harris). Today’s trading will reveal if it will have any effect on the stock market’s short-term direction. The news arrived in the middle of a major rotation in the market. Investors sold off Big Tech shares and bought beaten-down stocks that could benefit from lower interest rates. - “This is all about the bench of the stock market finally stepping up,” said Todd Sohn, managing director of ETF and technical strategy at Strategas Securities. - “While all of the best players from Nvidia to Microsoft pause their rally, the rest of the team is holding up their end of the bargain, with the most neglected groups catching a bid.” Todd Sohn, managing director of ETF and technical strategy at Strategas Securities (Photo: CNBC) But investors aren’t 100% convinced that interest rate cuts will be positive for smaller-cap stocks. Inflation is slowing, but it remains well above the 2% target. However, the Federal Reserve is warming up to the idea of cutting rates as soon as September because of the cooling labor market. So, Wall Street will try to figure out if the economy can avoid a recession even if the Fed cuts rates this September. The lag effect is long. A cut in September won’t affect the economy much until a few months later. As a result, incoming economic data will be important to gauge if the slowdown will stay modest (rather than accelerating the pace of the slowdown). As long as the slowdown remains controlled, the rally in non-tech sectors may be enough to support the current rally. This Thursday, we will get the latest GDP reading. Economists expect a strong economic growth, projecting a second-quarter real GDP growth of 2.7%. That would be a huge jump from 1.4% in the first quarter. The Fed’s preferred measure of inflation will be released on Friday. Tesla and Alphabet will report their results on Tuesday. Want Double-Digit Annual Returns With Little Risk? Own This Stock Today’s Stock Pick: HA Sustainable Infrastructure Capital (HASI) This stock doesn’t get enough attention. (But it offers you an opportunity to own shares in the company at an attractive price!) HASI is an investment firm that invests in real assets that facilitate the energy transition. It manages more than $12 billion in assets. There are three main markets/asset classes — (1) Behind-the-Meter, (2) Grid-Connected, and (3) Fuels, Transport & Nature. (Source: HASI) Clean energy is a megatrend that cannot be ignored. HASI expects U.S. clean energy capacity to skyrocket from 300 gigawatt to 896 gigawatt. That would be about three-fold increase in capacity. Money will also follow. U.S. annual investment in energy transitions is projected to increase from ~$140 billion to ~$1 trillion by 2050. That’d be a 614% increase in annual investment. (Source: HASI) HASI offers an attractive combination of income-generating, growth, and value. The stock is currently yielding ~5.2% in dividends. (That’s income-generating.) Its managed assets grew 24% YoY, as of the first quarter. (That’s growth.) And finally, its P/E is much lower than certain peers based on consensus EPS for next four quarters. (That’s value.) (Source: HASI) Investors can safely expect to enjoy about 15% annual returns from this stock. Why? It expects to deliver 10% adjusted EPS CAGR, while its dividend yield is about 5%. If you add them up, you get a 15% annual return. (Source: HASI) Can you bank on these projections? Probably so. The company has a consistent track record of delivering double-digit EPS growth. It had a 12% adjusted EPS CAGR since 2019, and its adjusted NII grew 28% CAGR int he same period. (Source: HASI) Not bad, right? Well you can own this stock while it is trading at a rock-bottom P/E ratio. In the chart below, you can see that HASI is trading at 15 P/E while it typically traded above 20 in the last few years. This is a good time to invest in HASI. (Source: MacroTrends) Bottom line: HASI can offer a 15% annual return through dividends and earnings growth. However, the stock may be due for a run-up because it is trading at a historically low P/E. This might be a wonderful low-risk, high-reward play. [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!](       © All Rights Reserved, Trade Alliance [Unsubscribe]( | [Manage Preferences](