What a Blockbuster Report!

Earn While You Learn! ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!]( Hello investor, What a Blockbuster Report! Wall Street was holding its breath before yesterday’s all-important jobs report. It ended up delivering a blockbuster report. Nonfarm payrolls surged 254,000 in September. (The most in six months.) The unemployment rate fell to 4.1%. Notably hourly earnings jumped 4% from a year earlier. (Source: Bloomberg) Unsurprisingly, it kicked off a wave of Wall Street experts offering their opinions on the jobs report. Legendary investor Stanley Druckenmiller was worried that the Federal Reserve might be “trapped” with its outlook for interest rate cuts. He sees little signs of the “restriction” that the central bank has been talking about. - “I hope the Fed is not trapped by forward guidance the way they were in 2021,” Druckenmiller said. “GDP above trend, corporate profits strong, equities’ all-time high, credit very tight, gold new high. Where’s the restriction?” Druckenmiller previously indicated that the jumbo-sized rate cut was excessive. Stanley Druckenmiller (Photo: Jeenah Moon/Bloomberg) BlackRock CEO Larry Fink also said last week that the market expects too many rate cuts because the economy is still strong. Former PIMCO CEO Mohamed El-Erian warned that “inflation is not dead.” He didn’t think the labor market was just solid. It was strong. - “This is not just a solid labor market, but if you take these numbers at face value, it’s a strong labor market late in the cycle,” said El-Erian, the president of Queens’ College, Cambridge. He encouraged the Fed to keep its eyes on inflation, rather than only focusing just on the labor market, because wage gains and the labor market have been robust. - “For the Fed, it means push back much harder against pressure from the markets to put you in the single mandate box,” he added. “Enough talk about, ‘The Fed should only be concerned about maximum employment.” Sure enough, swap markets reduced the number of rate cuts expected. A 25 basis point cut is priced in for November. For both November and December, traders are pricing in just ~55 basis points of rate cuts. With the report this strong, inflation is becoming a wild card in the economy. If inflation rises again, the Fed’s job will get even more complicated. It’ll be difficult to cut rates with inflation rising. It will be fine if inflation rises slightly, but it could turn into a major talking point if it unexpectedly surges like the recent jobs report. - “The question is whether the Fed will still cut rates on this,” said Priya Misra, portfolio manager at JPMorgan Asset Management. “The funds rate at 5% is still restrictive and the economy is slowing.” - “If inflation risks increase, it calls into question the entire easing cycle,” she said. This Stock May Be One Of The Most Exciting Growth Stories In The Market Today’s Stock Pick: Sezzle Inc. (SEZL) There’s no doubt that the Buy Now, Pay Later (BNPL) space is exploding. How hot is it? The BNPL market is expected to grow at a CAGR of 24.4% through 2033, according to a report by Nova One Advisor. That’s a fast-growing market! Sure enough, it has captured the attention of Big Tech companies like Apple. There are major players like Affirm, Klarna and Afterpay. Sezzle is a lesser-known player in the space. The market is large enough to absorb multiple competitors, so Sezzle offers a growth/value play in the exploding market. (Source: Sezzle) The insiders own about 50% of the company, so they are aligned with the shareholders. It shows in their capital allocation decisions. They executed share buybacks and have become profitable. But first, let’s talk about its flagship product. It is called Pay in 4. Consumers can pay just 1/4 of the purchase price at checkout and pay the remaining amount over the next six weeks. Sezzle pays the merchant in full upfront. Sezzle makes money by charging fees to merchants (typically a certain percentage of the order value) and a fixed fee per transactions. Consumers also have the option to pay in full, pay in two or pay over the long-term. (Source: Sezzle) What’s more, Sezzle is the only BNPL in North America to offer credit reporting optionality through short-term Pay-in-4 installments. So, consumers can build their credit scores by reporting these payments. Or they can choose not to report them. (Source: Sezzle) A young market: The BNPL remains a young market. It represents less than 2% of North America’s total commerce transaction value. Credit card has 40% of the market. There’s a plenty of growth ahead. Sezzle has less than 1% of North America’s total BNPL market, giving it a major opportunity to gain market shares. (Source: Sezzle) Profitability: Sezzle is the only pure-play BNPL that achieved positive GAAP net income for every quarter since 3Q22. Net income margin has soared in the last four quarters — going from just 3.3% (2Q23) to 53% (2Q24). (Source: Sezzle) Its recent quarter enjoyed a total income growth of 2,505% to make the company one of the most exciting growth stories in the market. (Source: Sezzle) Bottom line: Sezzle is a dark-horse play on the exploding BNPL market. It is profitable. Revenue growth is strong. The market is still young and growing fast. This is a good stock to own for the next decade. [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!](       © All Rights Reserved, Trade Alliance [Unsubscribe]( | [Manage Preferences](