Two Key Perspectives on the Market

Earn While You Learn! ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!]( Hello investor, Two Key Perspectives on the Market Volatility is definitely rising right now. In the graphic below, you will see that the VIX rose above recent highs. Here’s the weird thing about it — the market tends to be close to the end of its pullback when the VIX reaches this high. However, the market is still hovering around all-time highs right now. Regardless, don’t be surprised if the market continues its recent pullback. At the same time, we’ve got the presidential election coming up. It is a wild card. Traders should be prepared for every scenario and don’t become recklessly bullish. (Source: Ned Davis Research) Here’s another interesting perspective — Wall Street analysts have HUGE expectations for the S&P 500’s future growth. The current quarter looks like it will deliver an 11% EPS growth. It is a modest growth rate. Now, analysts expect the growth rate to surge to 22% in the fourth quarter. The first two 2025 quarters are projected at 24% and 19%, respectively. Basically, Wall Street expects an economic boom in 2025. Even with the economic boom, the S&P 500’s trailing P/E will lower to about 25 by the end of next year’s second quarter. That metric would be still historically high. Meaning? The S&P 500 will need to deliver phenomenal earnings growth over the next few quarters to justify its current valuation. Otherwise, there might be a valuation reset down the road. What’s more, the next few economic readings will be critical to help analysts determine if the upcoming economic boom is realistic or not. (Source: DarvasBoxGuru) 12,000 US Jobs were added in October, the smallest gain since December 2020 and well below estimates for a 125k increase. The prior two months were both revised down (-31k in September, -81k in August). This was, however, the 46th consecutive month of payroll growth in the US. A Long-Term Dividend Play Today’s Stock Pick: The Marcus Corporation (MCS) This is a sneaky dividend play. Listen, The Marcus Corporation owns movie theaters and operates hotel properties. (Source: The Marcus Corporation) The movie business is not the same as its glory years, of course. The movie theatre attendance will never go back to its peak, but it is surprisingly resilient. The attendance is rising back to its pre-pandemic levels. Marcus said its theaters’ total revenue rose 13.6% year over year for the third quarter. The company expects the second half to be “significantly stronger” than the first half. Comparable theater attendance increased by 7.1% for the quarter. In fact, its theater division exceeded pre-pandemic revenue and profitability. Now, let’s turn to its hotels and resorts division. Revenue grew 8.1% year over year. Clearly, things are turning up for both divisions of The Marcus Corporation. Here’s the main investment thesis for The Marcus Corporation: It used to be an incredible dividend stock. Its annual cash dividends grew 12.8% CAGR from 2014 through 2019. The company had to cut dividends during the pandemic, and it has been raising dividends steadily. Right now, it is yielding 1.63%. (Source: The Marcus Corporation) However, it is still two times lower than where it was in 2019. The company reported a $0.73 EPS in the recent quarter. It was the highest EPS since 2010, except for the fourth quarter in 2017. Since the company expects the second half to continue to perform well, the EPS may maintain its level. Meaning? Dividends are poised to keep growing over the years. This might be a good long-term play if you love dividend growth. It is an opportunity to buy the stock cheaply. If you hold it for ten years, the dividend yield could keep increasing to return a strong annual yield. Bottom line: The Marcus Corporation looks like a good dividend play for long-term holders. Warren Buffett loves to buy stocks that raise annual dividends because his yield will keep increasing. This has the potential to be one of those plays. [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!](       © All Rights Reserved, Trade Alliance [Unsubscribe]( | [Manage Preferences](