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☆ UBS warns that a historically reliable indicator shows earnings could fall 15% — and shares 24 high-quality stocks that will be immune from the drop
▼ + stars: | 2023-02-18 | by ( James Faris | ) www.businessinsider.com time to read: +3 min

Normally, a company's earnings — what's left from revenue after subtracting all expenses — are closely tied to its money made from operations, or operating cash flow (OCF), Parker wrote. UBSWhile that sounds promising at first, the bad news for investors is that OCF is actually a more reliable measure of profitability than earnings, Parker wrote. A low accrual suggests that a company's earnings are higher quality, while a high accrual implies lower quality earnings. UBS found 24 stocks that have low earnings risk since their OCF is high relative to net income. "We combine the accruals factor with change in valuation and EPS revisions to identify stocks that have 'de-risked earnings' vs 'at-risk earnings,'" Parker wrote.

☆ A crypto chartmaster shares why bitcoin could fall up to 50% after its massive comeback — and why he's bullish on these 4 altcoins in the long term
▼ + stars: | 2023-02-17 | by ( James Faris | ) www.businessinsider.com time to read: +3 min

Chartmaker Forrest Przybysz shared his 2023 price outlook for bitcoin and ether. Here are four altcoins that Przybysz is most optimistic about with bitcoin at risk of falling. In other words, while Przybysz's charts also indicate that ether could fall 20%, the token's potential upside of 57% is double that of bitcoin. Ether is trading above technical support but could rise substantially. Forrest Przybysz, Sistine ResearchDespite their strong showings so far this year, bitcoin and ether are still about 64% below their all-time highs.

☆ Buy these 12 stocks to profit from higher-than-expected price growth, according to an inflation fund manager who beat 96% of his competitors last year
▼ + stars: | 2023-02-16 | by ( James Faris | ) www.businessinsider.com time to read: +4 min

Top fund manager Simon Lack shared 12 top stocks to buy while inflation remains hot. The news confirmed what Simon Lack, a 37-year market veteran who runs a leading inflation fund, has long suspected: that price growth will remain an issue for investors throughout 2023 — and possibly beyond. If high inflation is the new normal, the Fed will struggle to achieve its goal of stabilizing prices, Lack said — at least not without causing a recession. His Rational Inflation Growth Fund (IGOAX) finished in the top 4% of its category in 2022 after beating its index by 14 percentage points, according to Morningstar. By contrast, his fund goes on offense by owning stocks in sectors that benefit from high prices.

☆ 3 reasons why the housing market won't crash in 2023, according to the real estate research director at the National Association of Realtors
▼ + stars: | 2023-02-13 | by ( James Faris | ) www.businessinsider.com time to read: +4 min

But the director of real estate research at the National Association of Realtors doesn't believe it. Here are three reasons why there won't be a housing market crisis this year. Renters hoping to buy a home after the US housing market collapses may be waiting a while. "Usually, the pending home sales is the indicator for the existing home sales," Evangelou said. Another near-term driver for the housing market is the seasonal trend of demand picking up in warmer months, Evangelou said.

☆ Buy these 10 stocks right now to earn steady income from dividends and gain exposure to AI while preparing your portfolio for a long recession, according to a veteran strategist
▼ + stars: | 2023-02-11 | by ( James Faris | ) www.businessinsider.com time to read: +4 min

Veteran market strategist Kenny Polcari sees stocks falling toward their December lows. Here are 10 stocks to buy now for strong dividends or exposure to trends like AI. The 40-year market veteran said the drop will come as the US economy loses steam and heads for a longer-than-expected recession. The market veteran added: "You have to prepare for what you think might be the worst and then be pleasantly surprised. Risk-averse investors should focus on stocks that pay dividends and are in recession-resistant sectors like healthcare, utilities, and consumer staples, Polcari said.

☆ Bank of America: Follow this 4-part strategy to double the stock market's returns for the next decade
▼ + stars: | 2023-02-10 | by ( James Faris | ) www.businessinsider.com time to read: +4 min

Bank of America believes small caps will beat the broader market significantly in the next decade. Small caps have outperformed their larger peers lately, and there's reason to believe the trend will continue for the next 10 years, according to Bank of America. The bull case for overlooked small capsBoth valuations and equity flows suggest that small caps are the market's best-kept secret right now. "So definitely for long-term investors, we think this is a great opportunity to overweight small caps." Hall acknowledged that concern but noted that unlike large caps, small caps have already factored in economic weakness.

☆ A worse-than-expected recession will cause the price of homes in overvalued markets to fall 20% this year — and these 3 cities are most at risk
▼ + stars: | 2023-02-09 | by ( James Faris | ) www.businessinsider.com time to read: +3 min

Here are three cities where properties are overvalued and could drop by 20%. "I think it's going to continue to be a rolling recession, of which housing has already started." Many pundits expect that to change, and some are predicting that US home prices will plunge 20% in 2023. How much home values fall depends both on how long and painful the upcoming recession is and what market they're in, Polcari said. "In some parts of the country that got really overexaggerated, you could see those prices come in 20%," Polcari said.

☆ Real-estate investing in a down market: Strategies to use, how far home prices will fall, cities where prices are falling the most, which markets to invest in, and more
▼ + stars: | 2023-02-09 | by ( William Edwards | ) www.businessinsider.com time to read: +6 min

That's bad news for current real-estate investors, and probably good news for prospective ones. On the other hand, it's potentially good news for prospective real-estate investors who have been sitting on the sidelines waiting for better deals. Below is a list of Insider stories to help navigate the current real-estate investing landscape as prices fall. They see US home prices falling another 6% in 2023, putting peak-to-trough declines at around 10%. Justin Sullivan / Getty ImagesOne of the most common financing strategies real-estate investors use to build up a portfolio is the BRRRR method: buy, rehab, rent, refinance, repeat.

☆ Dallas, Las Vegas, and these 13 other cities are the best markets for homebuyers as prices continue to decline in 2023
▼ + stars: | 2023-02-08 | by ( James Faris | ) www.businessinsider.com time to read: +3 min

Here are the 15 most attractive markets for homebuyers in 2023, according to Knock. US home prices are widely expected to fall in 2023 as the housing market's historic boom fades. Mortgage rates have fallen significantly in recent months but remain far higher than they were during the housing market's glory days. "Home shoppers will not see significant price declines in a majority of the 100 largest housing markets," Knock's report read. Below are the 15 best markets for homebuyers in 2023, according to Knock, along with the median price, expected changes in sale prices and growth, months of available supply, and expected sale price-to-list price ratio.

☆ Make these 4 undervalued investments now while the stock market rally unwinds after a red-hot jobs report, according to the investment chief at Cambria Funds
▼ + stars: | 2023-02-07 | by ( James Faris | ) www.businessinsider.com time to read: +6 min

The economist continued: "And it's not the level of the unemployment rate that matters as far as the economic cycle is concerned — it's the change in the unemployment rate. He told Insider in a recent interview that investors should target value stocks and foreign equities, specifically Chinese stocks and those in emerging markets. For most of the past decade, value stocks were unloved while growth names went on an explosive rally. But now value stocks have made a major comeback, while growth picks have melted down. When picking stocks, Faber said he's especially interested in two qualities: a stock's valuation and momentum.

☆ These are the 10 easiest cities to find a home in this year as housing inventory improves and mortgage rates continue to fall
▼ + stars: | 2023-02-05 | by ( James Faris | ) www.businessinsider.com time to read: +4 min

But the housing market remains tight nationwide, with supply down 42% from early 2020. Freddie MacThere's also mounting evidence that the once-scorching housing market has begun to cool off. By year's end, Knock expects there to be 34 buyer's markets and 34 seller's markets in the nation's 100 largest metro areas, with the remaining markets neutral. 10 markets that are easiest to buy a home inHowever, with supply stubbornly tight in many markets, buyers still face stubbornly high home prices. KnockBelow are the 10 US real estate markets that will see the fastest home inventory growth in 2023, according to Knock.

☆ BMO: These 15 top stocks will continue to outperform the market as an explosive rally for small caps gains momentum
▼ + stars: | 2023-02-04 | by ( James Faris | ) www.businessinsider.com time to read: +2 min

Small caps have outperformed their larger counterparts during a broader market rally. BMO Capital Markets shared its 15 favorite small stocks to buy right now. High-flying energy stocks have taken a breather recently while beaten-down technology companies, international equities, and small caps have made a comeback. Below are the 15 small-cap stocks that BMO Capital Markets recommends most right now, along with the ticker, market capitalization, and price-to-earnings (P/E) ratio for each. All except one of these stocks rose last month, wrote Brian Belski, the firm's chief investment strategist, in a February 1 note.

☆ Buy these 6 cheap stocks now to take advantage of a perfect setup for contrarian investors, according to a leading international fund manager
▼ + stars: | 2023-02-03 | by ( James Faris | ) www.businessinsider.com time to read: +4 min

Contrarian fund manager Krishna Mohanraj is bullish on international stocks despite recession fears. That contrarian approach has worked wonders for Mohanraj's Diamond Hill International Fund (DHIAX) recently. Over the last three months, Mohanraj's fund is up about 20% amid a long-awaited comeback for international stocks. 2 tailwinds that will send global stocks soaringMohanraj believes that foreign stocks' recent momentum will continue, even though the global economy is flirting with a recession. In fact, the fund manager described the current environment for international stocks as an "active investor heaven."

☆ 8 investments to make now as the Federal Reserve risks a recession by going 'way overboard' in raising interest rates, according to 7 top economists and strategists
▼ + stars: | 2023-02-02 | by ( James Faris | ) www.businessinsider.com time to read: +8 min

Since March, Rosenberg has warned that by trying to crush inflation, the Fed would inadvertently kill the economy as well. "I think that the odds now are that it's going to be more severe than people think because the Fed has gone way overboard," Rosenberg said of a recession. The contrarian view: With inflation falling, a recession is no guaranteeHowever, not every strategist thinks that a recession is a sure thing. But what I think we can see is the Federal Reserve is overdoing it and eventually, the Fed will have to cut rates." Fittingly, Parker's bets are contingent on his view that the US economy won't suffer from a severe recession.

☆ HSBC embarks on Saudi Arabia hiring spree amid deals boom
▼ + stars: | 2023-02-02 | by ( ) www.reuters.com time to read: +2 min

LONDON, Feb 2 (Reuters) - HSBC (HSBA.L) is hiring dealmakers as "fast as it can" in Saudi Arabia to capitalise on a wave of financing activity in the country, the global head of its investment bank told Reuters. The lender aims to increase headcount in its global banking and markets business in Saudi Arabia by 10-15% this year, Greg Guyett, the division's chief executive, told Reuters. HSBC declined to comment on how many such bankers it already employs in Saudi Arabia. HSBC's investment banking business made $65 million in profit in Saudi Arabia in 2021, according to company filings, the smallest such contribution among named countries aside from loss-making France. Saudi Arabia also sold $5 billion in bonds last October, its first international debt sale in almost a year.

☆ Goldman Sachs: Make these 10 trades right now for a guaranteed profit whether a stock soars or crashes after it reports earnings
▼ + stars: | 2023-01-30 | by ( James Faris | ) www.businessinsider.com time to read: +4 min

Volatility has been higher than average for stocks that have already shared Q4 earnings. Goldman Sachs has 10 options trades that will be profitable if stocks suddenly move on earnings day. Goldman Sachs researchers have concocted an investing strategy that's designed to be profitable whether a stock spikes or dives after reporting earnings. A straddle trade is where investors buy both a bullish call option and a bearish put option for the same stock at the same strike price and expiration date. In fact, volatility has fallen year-to-date, according to Goldman Sachs.

☆ Here are 5 ways investors can find deeply discounted stocks hiding in the red-hot energy and materials sectors, according to a top 1% value fund manager
▼ + stars: | 2023-01-27 | by ( James Faris | ) www.businessinsider.com time to read: +7 min

Top-1% value fund manager Scott Barbee shared the investing strategy that's brought him success. Barbee's Aegis Value Fund (AVALX) has beaten 98% of peers by returns over the past 15 years, according to Morningstar. After finding potential candidates for his fund, Barbee looks at a company's financial health by inspecting its balance sheet and capital structure to see how much debt it has and how it's organized. Following these steps has brought Barbee robust returns over the long term, regardless of what stage of the economic cycle he's investing in. The top holding in the Aegis Value Fund is Amerigo Resources (ARREF), which mines copper in Chile.

☆ Goldman Sachs: China's reopening economy is gaining momentum, and these 50 stocks are best positioned to benefit from the robust rally
▼ + stars: | 2023-01-26 | by ( James Faris | ) www.businessinsider.com time to read: +4 min

Goldman Sachs recently boosted economic growth estimates for both China and Europe. Since November, the SSE Composite Index (in dark blue) and the STOXX Europe 600 (in purple) have beaten the S&P 500 (in light blue). That led Goldman Sachs to boost its 2023 GDP estimate for the nation from 4.5% to 5.5%, driven by an 8.5% increase in inflation-adjusted consumption. Robust growth in China now means that Europe will avoid a recession this winter, according to Goldman Sachs. But Chinese stocks won't be the only ones to benefit from the nation's economic boom.

☆ A contrarian value fund manager who beat 99% of his competitors last year shares how he finds unloved stocks — and 8 of his favorite names to buy right now
▼ + stars: | 2023-01-25 | by ( James Faris | ) www.businessinsider.com time to read: +4 min

A top-1% value fund manager shared four rules that have helped him achieve success. Fund manager Matthew Fine's old-school, valuation-driven investing process helped his Third Avenue Value Fund (TAVFX) outperform 99% of competitors last year, according to Morningstar. And so far in 2023, the Third Avenue Value Fund is in the top 19% of its category with a market-crushing 10.6% return. Fine is patient with the stocks he's added to his portfolio because he's so careful in choosing them. 8 top stocks to buy and holdFine shared eight of his favorite stocks to own for the long term.

☆ Buy these 39 cheap stocks that are set for stronger earnings growth than their peers in 2023, according to Credit Suisse
▼ + stars: | 2023-01-23 | by ( James Faris | ) www.businessinsider.com time to read: +3 min

But cheap stocks as a whole are set to struggle this year, according to Credit Suisse. Credit Suisse projects that high P/E stocks will increase earnings by 15.5% in 2023 while their low P/E peers will muster just 3% growth. Over the last 10 years, richly valued companies have seen an average of 14.4% earnings growth compared to an average of 8.2% earnings growth for discounted stocks. 39 cheap stocks to buy for earnings growthHowever, not all inexpensive stocks will struggle this year. Below are the cheap stocks that Credit Suisse is optimistic about along with the ticker, market capitalization, and sector for each.

☆ The top-performing stock-picker of 2022 shares 6 of his favorite companies to buy now to protect against high inflation, low profits, and an energy shortage that will last for years to come
▼ + stars: | 2023-01-22 | by ( James Faris | ) www.businessinsider.com time to read: +6 min

Here are six energy companies that Davolos believes are strong long-term investments. Expect high inflation to hurt earnings in 2023 and beyondOf all the trends Davolos spotted, one stands out most: inflation will be higher for longer. Most investors assumed that the high inflation of the 1970s and '80s was gone forever after the internet and other technology kept prices down during the previous two decades. Stocks broadly will likely suffer if inflation stays stubbornly high, Davolos said, given that higher prices weigh on firms' profit margins. Energy royalty companies' efficient, asset-light business model gives them lofty operating margins that are the envy of their peers.

☆ Buy these 33 stocks that will benefit most if inflation doesn't fall as fast as expected, according to Credit Suisse
▼ + stars: | 2023-01-21 | by ( James Faris | ) www.businessinsider.com time to read: +3 min

Markets expect that 12 months from now, inflation will tumble to 1.8%, according to Credit Suisse. But price growth could linger longer than hoped if there's no recession after all. Here are 33 stocks that Credit Suisse sees succeeding if inflation stays high in 2023.Credit Suisse says that inflation expectations are plummeting after the latest Consumer Price Index revealed that price growth declined slightly in December. Price growth in the UK is seen sliding from a peak of 11.1% in October to 4.2% by year's end, while inflation in Europe is forecast to fall from a recent reading of 10.1% to 3.1% before 2024, according to Credit Suisse. 33 stocks to buy as inflation stays highIf inflation runs hotter than expected or accelerates again in 2023, there are 33 stocks — three in each sector of the S&P 500 — that Credit Suisse believes will benefit most.

☆ A veteran investor says the bears have it all wrong, and pessimism is already priced into markets. Here's where he's putting his money now that the time-tested playbook for investing in tech stocks ha
▼ + stars: | 2023-01-20 | by ( James Faris | ) www.businessinsider.com time to read: +5 min

But right now Lindzon isn't following the tech-focused investing approach that brought him so much success over the previous two decades. While he still sees opportunities to make money, he's much more cautious amid a high-interest-rate environment that led to the worst year for tech stocks since 2000. "You can't do a startup today and hire a hundred engineers because you can't raise enough money," Lindzon said. "I'm constructive in that money isn't coming out of the market completely," Lindzon said. Instead, Lindzon would advise investors to consider equal-weight stock market indexes, given that they offer diversification but aren't bogged down by mega-cap tech stocks.

☆ Buy these 42 stocks in BMO's market-crushing US dividend growth portfolio to earn income and hedge against high prices in 2023
▼ + stars: | 2023-01-19 | by ( James Faris | ) www.businessinsider.com time to read: +4 min

Here are the 42 stocks in BMO's US dividend growth portfolio, which beat the market soundly in 2022. One such model, the US dividend growth portfolio, beat the S&P 500 convincingly in 2022, falling just 5.4% after dividends compared to the index's -18.1% total return. And in 2021, the US dividend growth portfolio matched the S&P 500's performance exactly by rising 28.7%. Still, Belski noted that 30 of the 42 stocks held in BMO's US dividend growth portfolio topped the S&P 500 in the fourth quarter. Below are the 42 stocks in BMO Capital Markets' market-beating US dividend growth portfolio right now, along with the ticker, market capitalization, sector, and dividend yield for each.

☆ Inflation just fell for the 6th straight month. These 33 stocks will benefit most as price surges continue to fade in 2023, according to Credit Suisse.
▼ + stars: | 2023-01-14 | by ( James Faris | ) www.businessinsider.com time to read: +5 min

Here are 33 stocks that will thrive as inflation continues to decline in 2023. But Golub is perhaps most encouraged by the divergence in goods and services inflation. As a result, goods inflation has cratered after initially soaring while services inflation remains high. Another key driver of services inflation is wage growth, Golub said. Stay cautious about stocks despite lower inflationBut despite his optimistic view about the economy, Golub isn't overly bullish on stocks.

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