Judgment Day on Wall Street

Earn While You Learn! ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!]( Hello investor, Judgment Day on Wall Street The Federal Reserve will take the stage today on Wall Street. Fed officials will announce their interest rate decision this afternoon, marking the pivotal shift to the rate-cutting cycle. The decision will come after yesterday’s retail sales reading showed a growth. So, there are little signs of a “dire” condition that warrants massive action. Regardless, the market remains conflicted on the size of the first rate cut — 25 basis-point vs. 50 basis-point. Traders assigned a 55% probability of a 50 basis-point cut. It is a toss-up, and each camp has fair arguments. The 25 basis-point camp would argue that going for a jumbo-sized cut might telegraph anxiety about the economy. After all, the economy is normalizing. Signs of a recession are hard to find. A big cut could increase the anxiety that may make recession a self-prophecy. - “Recall that the Fed started a brief easing cycle with a 50 basis point cut in March 2020 with the global pandemic upon us; it would be very hard to argue that the situation is so dire now,” said Kristina Hooper at Invesco. Kristina Hooper at Invesco (Photo: CNBC) On the other hand, the 50 basis-point camp would point out that the current rate level is extremely restrictive. Inflation has fallen close to the 2% level, so leaving rates longer may increase the risk of a recession. Therefore, the central bank might be better off getting ahead of the curve to bring rates back to the neutral level. - “I hope they cut 50 basis points, but I suspect they’ll cut 25. My hope is 50, because I think rates are just too high,” said Mark Zandi, chief economist at Moody’s Analytics. - “They have achieved their mandate for full employment and inflation back at target, and that’s not consistent with a five and a half percent-ish funds rate target. So I think they need to normalize rates quickly and have a lot of room to do so.” The unemployment rate can shoot up quickly once it reaches a certain threshold. It will be almost impossible to stop once it is unleashed. Both arguments are valid. It is safe to say that the first rate cut will matter little to the economy. Whatever the future is, it won’t be transformed by a single cut. It takes multiple cuts to make a difference. So, what truly matters is the pace of cuts over the next few months. Hence, several analysts believe that the most important information after the FOMC’s meeting is how often Fed officials plan to cut rates down the road. Matt Maley at Miller Tabak believes the Fed will signal that it’ll be aggressive going forward, regardless of its rate cut decision. Moreover, the central bank is expected to try to reassure investors that a rate cut doesn’t mean it is bearish on the economy. You Might Want To Own This Stock For Many Years Today’s Stock Pick: Clear Secure, Inc. (YOU) When you go through security lines at an airport, I am sure that you’ve noticed these people who cut the line. They came from the “CLEAR” area. Yep, I am talking about CLEAR, where people verify their identities by using eyes and fingerprints. Once verified, they cut these people who go through TSA security lines. Indeed, biometric identification is the future. (Photo: Shutterstock) Rather than carrying passports, why not identify yourself through your eyes or fingerprints? It is more convenient and secure. The world is warming up to it. CLEAR is a wonderful company to bet on this future. After all, Peter Lynch always talked about investing in companies you love. If you think CLEAR offers a wonderful benefit of getting through security lines quickly, maybe the business itself is poised to grow rapidly. (By the way, becoming a CLEAR member costs $199 a year if you are curious.) The company has more than 25 million members. It has partnered with LinkedIn, Home Depot, [Public.com](, and Wellstar. It is only scratching the surface. It just launched CLEAR Perks, which offers exclusive curated benefits to members. (Source: Clear Secure) How popular is CLEAR? Since its IPO three years ago, total Members exploded by 283%. Operating Cash Flow surged 689%. Free Cash Flow did even better with a 2,218% growth over the period. Impressive, right? The company is only getting started. The recent quarter’s adjusted EBITDA margin was 25.4%. The company plans to reach a +35% long-term margin. That’ll be a big margin expansion. What’s more, the company’s share buybacks shrank its share count by 12% in three years. Its dividend yield is 1.23%. The yield is poised to grow over the years if CLEAR keeps buying back shares. Bottom line: Clear Secure looks like a spectacular company to become a shareholder. It loves to buy back shares. Those who hold the stock may see their dividend yield grow over the years. And its business is still in its infant stage. The future is bright. [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!](       © All Rights Reserved, Trade Alliance [Unsubscribe]( | [Manage Preferences](