This week = “more trouble than calm”

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Inflation, of course. We will get the latest reading of the Federal Reserve’s preferred inflation reading (the monthly personal consumption expenditures price index) on Thursday. Investors will pay attention to whether there’s any risk of inflation heating up that could delay rate cuts. The current data could make or break the current rally since the market soared by over 20% since October, and Wall Street is wondering if a pullback is due to breathe a little bit. - “Nvidia has been the gift that keeps on giving with blockbuster earnings reports driving semis, tech, and the broader market higher this past week. With the market now up over 20% since its Oct 2023 low, we would expect the market to take a breather at some point,” said Stephanie Lang, chief investment officer at Homrich Berg. - “A hotter than expected PCE report this week could be a data point that could dampen the market enthusiasm.” Stephanie Lang, chief investment officer at Homrich Berg (Photo: Bloomberg) Moreover, we will get January durable orders data on Tuesday and January wholesale inventories on Wednesday. This week will also have several big names reporting results – Salesforce, Norwegian Cruise, J.M. Smucker, Hormel and Anheuser-Busch. The CRM leader will offer a glimpse at tech spending to see if there’s any slowdown in demand. All in all, BNY Mellon’s Bob Savage warned that this week could “bring more trouble than calm” due to possibly higher-than-expected inflation. - “The week ahead may bring more trouble than calm – as March starts with a world concerned about sticky inflation, doubting the wisdom of waiting central bankers and fearing larger conflicts leading to further global trade disruptions,” Bob Savage, head of markets strategy and insights at BNY Mellon, wrote in a note to clients. So, expect some volatile trading once the inflation data gets released on Thursday. Top Stock To Follow Buffett’s Wealth Formula Today’s Stock Pick: AbbVie, Inc. ([ABBV]( Want to hear Warren Buffett’s sneaky secret of creating wealth through investing? Even though Berkshire Hathaway doesn’t pay out dividends, Buffett has a strong bias for any stock that pays out dividends and buy back shares. The annual return can become more reliable with this strategy. Rather than relying on the stock price to go up, you’d only need to find a company that spits out cash. You’d pocket it through dividends and share buyback. Even better if a company has a powerful competitive moat that makes future cash flow more reliable. That’s why we chose AbbVie as our top stock pick for today. Just imagine if you followed Buffett’s strategy and bought AbbVie back in 2013. The share price was $34. AbbVie is considered as a Dividend King because it increased its quarterly dividend by 285%+ since 2013! Right now, AbbVie pays out a $6.20 dividend per share. With your initial cost of $34, you would enjoy… …18% annual return from dividends alone! Isn’t this amazing? This is a virtually “risk-free” return that will beat the S&P 500 by more than 50% annually. That’s the power of investing in a company that increases its dividend steadily. Compound interest is going to work its magic. By the way, you would ALSO enjoy a whopping 305%+ return from AbbVie’s share appreciation. And you will see why this could continue for the next decade. AbbVie’s flagship product, Humira, will lose its exclusivity next year so the market is down on the stock. However, it has two new drugs coming up in the pipeline called Rinvoa and Skyrizi. The company expects both to eventually eclipse Humira’s peak sales. Both drugs are proven moneymakers. Its sales exploded from $0.4 billion in 2019 to $2.3 billion in 2020. The growth has continued to this day. In the third quarter of 2023, Skyrizi grew its revenue by 50.4% while Rinvoq’s revenue jumped 55.1%. That is an excellent growth because Skyqizi posted $1.88 billion revenue in the quarter, while Humira had $4.01 billion. So, Skyqizi is catching up quickly. - “We continue to anticipate that these two products will collectively exceed Humira peak revenues by 2027 with robust growth expected into the next decade,” said COO Rob Michael. (Source: AbbVie) But there will be a short-term pain. AbbVie expects its earnings to get a small hit in 2023 because of Humira’s exclusivity becoming expired. The top-line growth will be “modest” in 2024 but return to strong growth in 2025. However, AbbVie recently raised its adjusted diluted EPS guidance for the full year 2023 from $10.97 to $11.10 for the high-end of the guidance range. Besides these two drugs, AbbVie also holds some of popular drugs in its portfolio. You’ve heard of Botox, right? It’s the “magical” treatment to wipe out wrinkles – a staple in Hollywood. Its filler Juvederm can erase decades of aging with strategic fillers around the cheeks, lips, and the mouth. AbbVie’s aesthetics portfolio struggled in the recent quarter due to coronavirus lockdowns in China and an exit in Russia. However, the company expects a rebound due to two new filler launches and a loosening of the Covid-19 policy in China (whenever it will happen). (Source: AbbVie) Bottom line: AbbVie knows how to win in the pharma industry. It knows how to develop a blockbuster drug and scale it up to turn it into a cash cow. While its future cash flow can be secured with two new drugs and its Botox franchise, you can count on the company to continue to develop new moneymaking drugs. By the way, your current dividend yield would be at an attractive 4.48%. Simply said – buy this stock and hold it for decades. [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!](       © All Rights Reserved, Trade Alliance [Unsubscribe]( | [Manage Preferences](