Reports

The Ticking Time Bomb: Navigating the Inevitable Global Debt Crisis

Janet Yellen, President-elect Joe Bidens nominee for Secretary of the Treasury, participates remotely during a hearing, as she participates in a Senate Finance Committee hearing in Washington DC, on January 19, 2021. - Biden, who will take office on January 20, 2021, has proposed a $1.9 trillion rescue package to help businesses and families struggling amid the pandemic, and Yellen would be tasked with getting that massive bill through a Congress where some are wary of the skyrocketing budget deficit. (Photo by Anna Moneymaker / POOL / AFP) (Photo by ANNA MONEYMAKER/POOL/AFP via Getty Images)

Imagine standing at the edge of a colossal financial abyss, the ground crumbling beneath your feet. That’s precisely where the world stands today, on the precipice of a debt crisis so severe it threatens to swallow global economies whole. Remember the 2008 financial meltdown? That would seem like a gentle hiccup compared to what’s brewing on the horizon.

Let’s pull the curtains back on the stark reality: Global debt is skyrocketing, with countries from the United States to Japan racing towards fiscal chaos. As of 2021, global debt surged to an eye-watering $281 trillion, according to the Institute of International Finance. That’s more than 355% of world GDP!

But where does this lead us? History doesn’t just whisper; it screams warnings. We’ve seen this narrative unfold in Greece’s economic turmoil and Argentina’s default saga. When national debts go unchecked, economies don’t just stumble; they crash.

The Domino Effect of the Debt Bomb

Consider this: The U.S., the world’s largest economy, is drowning in over $28 trillion of national debt. But who holds this debt? Countries like China and Japan. When the U.S. suffers, shockwaves will ripple across the globe, destabilizing markets, currencies, and, yes, your personal investments.

The Illusion of Control

Central banks worldwide have been on a money-printing spree, trying to band-aid economies. But what happens when you pump more currency into the system? Inflation spikes. Your hard-earned money loses purchasing power. Remember the haunting tales of hyperinflation in Zimbabwe or the Weimar Republic? Real stories, real consequences.

Your Financial Lifeboat

In the face of this looming catastrophe, what’s an investor to do? It’s not all doom and gloom if you act wisely. Here are three stocks that could serve as your financial lifeboat in a debt crisis tsunami.

  1. The Procter & Gamble Company (PG): Consumer staples like Procter & Gamble are your safe bet during economic downturns. Why? Even in crisis, people need basic necessities. With a robust portfolio of everyday products and a history of stable dividends, PG can add a layer of security to your portfolio.
  2. Franco-Nevada Corporation (FNV): Gold has been humanity’s go-to safe haven in financial storms. Franco-Nevada, a leading gold-focused royalty and stream company, offers exposure to gold without the operational risks of mining companies. It’s a smart way to hedge against the market madness.
  3. Alphabet Inc. (GOOGL): Surprised? Here’s the truth: Even in crises, the digital world prevails. Alphabet, the parent company of Google, dominates the digital space. With a diverse ecosystem beyond search, like cloud computing and autonomous vehicles, it’s positioned to weather economic shocks.

The Final Bell

The clock is ticking, and complacency is not an option. It’s time to brace for impact and safeguard your financial future. Diversify. Be vigilant. And remember, the goal isn’t just to survive the crisis but to emerge financially stronger.

Where to invest $500 Right Now?

Before you consider buying any of the stocks in our reports, you’ll want to see this.

Investing legend, Marc Chaikin just revealed his #1 stock for 2024

And it’s not in any of our reports.

During his career of nearly 50 years, Marc Chaikin was one of the quantitative minds behind some of the most famous investors in history: Paul Tudor Jones, George Soros, Steve Cohen, and Michael Steinhardt.

Even the Nasdaq hired him to create three new indices.

And now he’s going live with his #1 pick for 2024.

You can learn all about it on Mr. Chaikin’s Website, here.

Wondering what stock he’s investing in?

Click here to watch his presentation, and learn for yourself

But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream… And by then, it could be too late.

Click here to reveal the name and ticker of Marc Chaikin’s no. 1 pick for 2024

China vs. United States: Global Race for Rare Earth Metals

Plus our 3 favorite stocks for 2024

Deep in the heart of a rare earth mine, John, a third-generation miner, can feel the weight of history and the urgency of the future with every swing of his pickaxe. It’s not just minerals he’s unearthing; it’s the fuel for a technological revolution. As he wipes the sweat from his brow, he can’t help but feel the tremors of a global race that transcends borders – a silent tussle between the U.S. and China, the juggernauts vying for control over these precious elements.

John’s story is echoed across countless mines in America, forming the bedrock of a national effort. The U.S., once reliant on China for over 80% of its rare earth imports, has felt the vulnerability of its supply chains. The recent tensions have only intensified the pursuit, making every unearthed mineral a small triumph in a larger geopolitical narrative.

The Geopolitical Chessboard: U.S. and China’s Tug of War

The rare earth elements (REE) industry has become a focal point in the U.S.-China trade and technological confrontations. According to a report from Foreign Policy, the U.S. government’s realization of overdependence on Chinese REE has spurred a strategic push to revitalize domestic mining and processing industries. This initiative isn’t just about economic gain; it’s a matter of national security and technological sovereignty.

China, holding the lion’s share of global REE processing capacity, understands the leverage it possesses. CNBC highlights how China’s dominance makes U.S. supply chains vulnerable, a concern that became palpable when China threatened to cut off rare earth exports during the trade disputes of 2019. With 85% of U.S. rare earth imports coming from China, the stakes couldn’t be higher.

The U.S. response has been swift and strategic, marked by initiatives to form alliances with Australia and Canada and investments in domestic ventures like the Mountain Pass mine in California. These moves aim to reduce the U.S.’s dependency on Chinese imports from 80% to 25% by 2030, a shift that would reconfigure global supply dynamics.

Invisible Architects: The Silent Force Powering Modernity

Rare earth metals are the unsung heroes of modern technology. From smartphones, electric vehicles, and wind turbines to defense technologies like jet engines and missile guidance systems, these elements are integral to the fabric of contemporary life. Their unique magnetic, luminescent, and electrochemical properties make them irreplaceable in a plethora of applications.

However, the journey from mineral ore to refined elements is a testament to human tenacity in the face of environmental and technical challenges. The process is not only expensive and complex but also fraught with ecological implications, necessitating sustainable practices and responsible stewardship.

The global market for rare earths, driven by the insatiable demand for high-tech consumer products and green technologies, is projected to soar, potentially reaching $14.43 billion by 2025. This surge underscores the escalating urgency for diversifying supply chains and investing in sustainable extraction and processing techniques.

Navigating the Rare Earth Investment Terrain: Three Stocks to Watch

As the world grapples with the dual challenge of advancing technology and safeguarding ecological integrity, investing in rare earth metals presents a unique opportunity. Here are three stocks that are pivotal in this sector:

  1. MP Materials Corp (MP)
    • Overview: MP Materials owns and operates Mountain Pass, the only rare earth mining and processing site of scale in North America. They are a fundamental link in the global supply chain, providing approximately 15% of the world’s rare earth content.
    • Analysis: With its strategic position in the global market, robust environmental standards, and focus on innovation, MP Materials stands as a solid investment in the rare earth sector. Their commitment to closing the rare earth supply chain loop is a significant step toward market resilience.
  2. Lynas Rare Earths Ltd (LYC)
    • Overview: Lynas Corporation operates the Mt Weld Mine and Concentration Plant in Australia and the Lynas Advanced Material Plant (LAMP) in Malaysia. They have a strong production base, supplying the global market with rare earth products.
    • Analysis: Lynas has made strides in sustainable mining practices and is well-positioned in the market with its robust supply chain. The company’s expansion plans and its emphasis on sustainability and compliance make it a promising investment.
  3. China Northern Rare Earth Group High-Tech Co., Ltd (600111.SS)
    • Overview: As part of the six major full-industry chain rare earth enterprises in China, the company has comprehensive operations spanning mining, smelting, and processing of rare earth metals.
    • Analysis: Given China’s dominance in the rare earth industry, investing in a Chinese company offers direct entry into this booming market. Their extensive resources, government support, and growing emphasis on environmental standards contribute to a positive outlook for investors.

Conclusion: Embracing the Elements of Progress

As John and thousands of miners like him continue their daily pursuits, they’re not just extracting elements; they’re reclaiming their nation’s autonomy in the face of a global power shift. The rare earth saga is far from over, with each new policy and mine bringing us closer to a future where technological and defense imperatives are secure within national borders.

Investors in this sector aren’t just spectators; they’re contributors to a narrative of resilience, innovation, and foresight. As the U.S. and China continue their strategic plays, the market will respond with opportunities reflective of this new era’s complexities and promises.

Where to invest $500 Right Now?

Before you consider buying any of the stocks in our reports, you’ll want to see this.

Investing legend, Marc Chaikin just revealed his #1 stock for 2024

And it’s not in any of our reports.

During his career of nearly 50 years, Marc Chaikin was one of the quantitative minds behind some of the most famous investors in history: Paul Tudor Jones, George Soros, Steve Cohen, and Michael Steinhardt.

Even the Nasdaq hired him to create three new indices.

And now he’s going live with his #1 pick for 2024.

You can learn all about it on Mr. Chaikin’s Website, here.

Wondering what stock he’s investing in?

Click here to watch his presentation, and learn for yourself

But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream… And by then, it could be too late.

Click here to reveal the name and ticker of Marc Chaikin’s no. 1 pick for 2024

Alan Turing and the Dawn of Artificial Intelligence

Plus our 3 favorite A.I. Stocks for 2024

In the quiet office of King’s College, Cambridge, surrounded by the chaos of the ongoing Second World War, a young British polymath named Alan Turing would lay the groundwork for a field that would come to revolutionize the world: artificial intelligence (AI). Turing, with his pioneering work in computational theory, posed a question that shook the very foundations of scientific thought: “Can machines think?”

This query would catapult a global race, spanning decades, pushing the boundaries of technology, ethics, and understanding of human intelligence. From the Turing Test’s foundational concepts to the birth of machine learning in the 1950s, the journey was riddled with both skepticism and wonder. The ‘AI winter’ periods of the 1970s and 1980s saw funding and interest in AI research ebb due to its high complexity and cost.

However, the dawn of the 21st century brought with it an AI renaissance. The amalgamation of advanced computational power, sophisticated algorithms, and vast data catapulted AI from science fiction to a palpable force driving global innovation.

The Synaptic Symphony: How AI is Orchestrating the Future

Today, AI permeates every facet of life. It’s in the way we shop, with personalized online retail experiences, the way we’re diagnosed, with AI-driven predictive healthcare, and even the way we communicate, with real-time language translation and smart replies. The global AI market size is expected to reach USD 266.92 billion by 2027, at a compound annual growth rate (CAGR) of 33.2%.

Industries across the board are harnessing AI to enhance efficiency, personalize experiences, and innovate solutions. In finance, AI-driven algorithms now execute complex trades in milliseconds. In automotive manufacturing, AI-powered robots work alongside humans, streamlining production and reducing hazards.

Yet, we stand merely on the cusp of the AI revolution. Projects like neural interfaces and autonomous vehicles may redefine existence, blurring lines between man and machine, challenging our concepts of consciousness and identity.

Investing in Digital Neurons: Three AI Stocks on the Cusp of Tomorrow

As we navigate this brave new world, investment in AI offers a lucrative frontier. Here are three AI stocks that are pivotal in shaping this landscape:

  1. NVIDIA Corporation (NVDA)
    • Overview: Initially recognized for its graphics processing units (GPUs), NVIDIA has emerged as a behemoth in AI computational processing. Its deep learning and AI solutions are used globally in industries including healthcare, automotive, and finance.
    • Analysis: NVIDIA’s strategic acquisitions, robust R&D, and strong partnerships position it as a leader in AI’s future. Its recent ARM acquisition points to an ambitious roadmap, solidifying its place in AI chip innovation.
  2. Alphabet Inc. (GOOGL)
    • Overview: Google’s parent company, Alphabet, is a powerhouse in AI research. Its DeepMind subsidiary is renowned for AI research in health and life sciences, while Google AI leads in consumer-centric AI products.
    • Analysis: With its diverse portfolio, Alphabet shows resilient growth potential. Its commitment to ethical AI and groundbreaking research in machine learning makes it a cornerstone in AI investment.
  3. Salesforce.com, Inc. (CRM)
    • Overview: Salesforce is pioneering AI in customer relationship management (CRM) with its Einstein platform, transforming sales, service, and marketing by integrating AI into cloud-based services.
    • Analysis: As businesses pivot to customer-centric approaches, Salesforce’s AI-driven analytics and automation present a compelling investment narrative. Its recent Slack acquisition indicates an expansion strategy into collaborative tech powered by AI.

Conclusion: Navigating the Labyrinth of the Mind

From Turing’s theoretical musings to AI’s tangible global impact, we are participants in one of history’s defining chapters. The realm of artificial intelligence, once a speculative fiction, now commands economies, dictates global trends, and rewrites life’s fabric. Investing in AI isn’t merely capital allocation; it’s a vote of confidence in a future where technology and humanity converge in a symphonic interplay of bytes and consciousness.

For the visionary investor, these stocks represent more than financial instruments; they are the keys to a domain that will shape our collective destiny. As we stand on this digital precipice, we are not just observers but architects of a new world.

Where to invest $500 Right Now?

Before you consider buying any of the stocks in our reports, you’ll want to see this.

Investing legend, Marc Chaikin just revealed his #1 stock for 2024

And it’s not in any of our reports.

During his career of nearly 50 years, Marc Chaikin was one of the quantitative minds behind some of the most famous investors in history: Paul Tudor Jones, George Soros, Steve Cohen, and Michael Steinhardt.

Even the Nasdaq hired him to create three new indices.

And now he’s going live with his #1 pick for 2024.

You can learn all about it on Mr. Chaikin’s Website, here.

Wondering what stock he’s investing in?

Click here to watch his presentation, and learn for yourself

But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream… And by then, it could be too late.

Click here to reveal the name and ticker of Marc Chaikin’s no. 1 pick for 2024

Stock Hotlist: Three Picks for the Week Ahead

Picking the wrong stocks can decimate your portfolio.

They’re pure portfolio poison.  

But the right stocks…

If you pick the right stocks, you could find yourself jumping for joy on top of an enormous pile of cash.

With over 4,000 tickers to choose from, finding the right stock at the right time can prove to be nearly impossible… 

Unless you’re spending hours each day combing the markets and researching companies.  

That’s why we’ve done the legwork for you.  

We sort through thousands of stock ideas and whittle them down to a few top choices primed for solid price action in the coming days, weeks, and months.  

This week, we’ve narrowed it down to three stocks that could be getting significant attention in the near future. 

Palo Alto Networks (PANW) 

Palo Alto Networks’ stock has shown significant growth this year, surging by over 70% year-to-date to reach $236.81 per share. Analysts’ 12-month price targets range from $278.00 to $340.00, indicating potential upside ranging from 17.4% to 43.6%.

The global cybersecurity market, valued at $153.65 billion in 2022, is projected to grow at a CAGR of 13.8% from 2023 to 2030, reaching $424.97 billion. Factors driving this growth include the rising number of cyberattacks, the expansion of e-commerce platforms, the proliferation of smart devices, and the increasing use of cloud technology.

Palo Alto Networks reported an impressive 18.48% year-over-year increase in annual revenue, rising from $5.81 billion in 2022 to $6.89 billion in 2023. Additionally, the company boasts a robust gross profit margin of 72.29%, significantly higher than the sector median of 49.10%. Its levered free cash flow margin stands at 29.70%, a substantial 302.82% above the sector median of 7.37%. Furthermore, EBITDA growth has reached an astounding 1,778.98%, far surpassing the sector median of 7.79%. These metrics underscore Palo Alto Networks’ profitability and steady growth.

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PepsiCo (PEP)

Investors should consider seizing a significant buying opportunity in the beverage and snack giant, PepsiCo, as it approaches its upcoming earnings release on October 10.

Despite the recent market turbulence, which has also affected archrival Coca-Cola ( KO), with both companies seeing a 7% decline in the last month, PEP stock is down 10% for the year. This dip comes despite PepsiCo consistently outperforming earnings expectations and consistently raising its full-year guidance.

What’s more, PepsiCo stands as a dependable blue-chip stock that can weather economic storms, making it an attractive option in the event of a 2024 recession. Currently trading at 28 times future earnings, PEP stock presents an affordable investment opportunity. Additionally, it serves as a solid defensive play should the economy contract, offering shareholders a quarterly dividend of $1.27 per share, translating to a substantial yield of 3.14%. Over the last five years, PEP stock has demonstrated impressive growth, increasing by 52%.

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CrowdStrike Holdings (CRWD)

CrowdStrike has been experiencing a strong bull run this year, propelled by the overall surge in technology stocks.

The company’s remarkable financial results have significantly contributed to CRWD stock’s impressive performance. In a recent report, CrowdStrike unveiled a second-quarter earnings per share (EPS) of 74 cents, surpassing the consensus forecast of 56 cents. Moreover, Q2 revenue stood at $731.6 million, marking a 37% increase from the previous year and surpassing analyst expectations of $724.1 million. The company’s free cash flow at the end of the quarter reached $188.7 million, up by 39% compared to the previous year’s $135.8 million.

Regarding its outlook, CrowdStrike provided a guidance of $775.4 million to $778 million in revenue and 74 cents in earnings for the third quarter of this year, both of which exceeded Wall Street’s forecasts. With a 58% increase in CRWD stock this year and a remarkable 155% growth over the past five years, the company appears to be riding high on its current momentum.

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Three Stocks to Sell ASAP

The right stocks can make you rich and change your life.

The wrong stocks, though… They can do a whole lot more than “underperform.” If only! They can eviscerate your wealth, bleeding out your hard-won profits.

They’re pure portfolio poison.

Surprisingly, not many investors want to talk about this. You certainly don’t hear about the danger in the mainstream media – until it’s too late.

That’s not to suggest they’re obscure companies – some of the “toxic stocks” I’m going to name for you are, in fact, regularly in the headlines for other reasons, often in glowing terms.

I’m going to run down the list and give you the chance to learn the names of three companies I think everyone should own instead.

But first, if you own any or all of these “toxic stocks,” sell them today…

Beyond Meat (BYND)

One of the standout concerns for Beyond Meat is its declining revenue growth. In Q2 2023, the company reported a worrying 31% YoY decrease in net revenues, coupled with a 23.9% YoY drop in product volume sold. This decline raises questions about Beyond Meat’s ability to sustain consumer interest and market share. Various factors contributed to this decline, including weakened demand, heightened competition, and the natural ebb and flow of sales compared to the previous year.

Furthermore, Beyond Meat’s gross margin is currently a significant area of concern. The company’s reported gross margin for the same quarter was a mere 2.2%. This low margin indicates that Beyond Meat is grappling with substantial cost challenges. While there was a slight improvement compared to the previous year, this margin needs a boost for sustainable profitability.

It’s worth noting that Beyond Meat has reported four consecutive quarters of reducing inventory, a positive sign of efficient operations. However, this consistent reduction might also point to challenges in predicting demand and managing product shelf life. In a highly competitive landscape where many players vie for shelf space, pricing power, and consumer attention, maintaining market share and premium pricing becomes increasingly challenging.

Finally, Beyond Meat’s strategy heavily relies on partnerships with fast-food giants like McDonald’s (MCD). While partnerships can be fruitful, overreliance on them limits the company’s control over its destiny and exposes it to potential vulnerabilities if partnerships fail to perform as expected.

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Foot Locker (FL)

The past year hasn’t been kind to Foot Locker, as its stock price has taken a 40% hit. Investors have been selling off shares following disappointing earnings reports. In the latest Q2 report, the company recorded a 10% decrease in total sales compared to the previous year and reported a net loss of $5 million, a significant contrast from the $94 million net income in Q2 2022. Nearly all of their brands saw a decline in sales except for their WSS segment.

To address its financial challenges, Foot Locker temporarily suspended dividend payments to investors, despite initially approving a payout of $.40 per share for the second quarter. This decision is part of Foot Locker’s strategy to strengthen its financial position for the future. The company has also adjusted its total sales guidance for the remainder of the year.

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Impinj (PI)

Impinj is a chip manufacturer specializing in innovative radio frequency identification (RFID) solutions. Their mission is to connect products like shipments, vehicles, and luggage to the internet wirelessly using RFID technology.

However, Impinj has faced challenges in the past year, resulting in a 45% drop in its stock price. This decline was triggered by a disappointing Q1 2023 outlook that led investors to sell off their shares, causing a 39% immediate drop in the stock price.

In its most recent earnings report from July 26, Impinj did show promising signs, including a 44% increase in revenue and a 40% reduction in net loss compared to the previous year. However, these positive results need to offset the concerns arising from the company’s uncertain future outlook. Impinj may face challenges.

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Three Stocks You Absolutely Do Not Want to Own During the Market’s Next Downturn

Right now, we’re not experiencing what you’d call a broad market sell-off, but the market’s future remains uncertain, as we can agree that it’s certainly been a wild year on Wall Street. There are concerns: 

❖ High, seemingly increasing inflation 

❖ Geopolitical conflicts 

❖ Increased cost of living 

❖ A potential 2024 recession 

If there was ever a good time to trim some unnecessary fat from your portfolio, this may as well be it. 

Despite the unpredictability, we should be prepared for a turbulent near-term stock market, and lowering exposure to debt-ridden, volatile stocks is a prudent step… 

Lucid Group Inc (LCID) 

Perhaps a little more deceptive than the others on this list, or at least misguided, is Lucid Group Inc. (LCID), which has a market capitalization and public attention akin to Rivian Automotive (RIVN). However, rather than becoming a formidable Tesla (TSLA) competitor, RIVN looks like it’s headed for an unfortunate downfall. Investors are well aware of LCID’s letdown, hence the decline of its trading price, no longer being seen as a “Tesla killer” and dangerously close to penny stock status. While some argue for LCID’s potential in tech licensing, given the sales declines, significant cash burn, and ongoing price depreciation, it’s probably wise to steer clear. I’ll highlight a few of LCID’s downsides. 

LCID is down year-to-date by 22.04% and has a 1.69 beta score (anything over 1 indicates vulnerability). With an ROE (return on equity) of –78.61%, LCID has a disproportionately high P/S (price to sales) ratio of 12.59x. For Q2 2023’s earnings call, LCID reported an EPS of –$0.42 per share vs. –$0.33 per share as expected by analysts, a –28.55% defeat, and it lost to analysts’ revenue estimates by a –26.41% margin. During the same period, LCID showed negative year-over-year growth in net income (-246.71%), EPS (-21.21%), and net profit margin (-123.68%). With a 10-day average trading volume of 25.3 million shares, LCID has a median price target of $7.25, with a high of $10 and a low of $5

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AMC Entertainment Holdings (AMC) 

AMC Entertainment (AMC) has lost its once-renowned “meme king” status, experiencing a significant share decline since August. Despite hopes for stabilization, the ongoing trend suggests that further sharp price drops for AMC could be on the horizon. The recent sell-off is primarily attributed to AMC’s substantial shareholder dilution strategy. Unfortunately for AMC, CEO Adam Aron’s attempts to present this as a positive move have not convinced investors. With the persistent issue of cash burn at AMC, which I’ll highlight next, the probability of more problems remains high, making this stock one to avoid. 

AMC is currently down year-to-date by 77.95%, trading at the very bottom of its existing 52-week range. With a 2.02 beta score, AMC has a stunningly backward ROE of –1,913.03%, a negative free cash flow of –$460 million, and perhaps most surprising, a total of $9.5 billion in debt, which is more than $8 billion

higher than its market capitalization. AMC shows negative quarterly EPS growth (-202.35%) and revenue growth (-20.85%). With a 10-day average trading volume of 26.09 million shares, AMC has a median price target of $7.38, with a high of $45 and a low of $4.41; this suggests a 7% decrease from its current price

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Hudson Pacific Properties Inc (HPP) 

Particularly among REITs (real estate investment trusts), Hudson Pacific Properties (HPP) has found itself in a precarious position. The ongoing work-from-home trend continues to impact HPP’s office portfolio, and Hollywood union strikes present significant financial challenges for its sound stages and film and TV production facilities. Despite a temporary climb in shares, HPP’s stock is again declining, triggered by the decision to halt dividend payments. Even if the Hollywood strikes were to end soon, other concerns, such as HPP’s growing debt and increasing interest expenses, pose substantial risks. Considering these factors and that it no longer offers a dividend, HPP is a stock that should be dumped. 

HPP is down year-to-date by 30.65%, has a 1.16 beta score, a negative ROE, a TTM (trailing twelve-month) momentum growth figure of –33.60%, and a D/E (debt to equity) measure of 141.12%. HPP currently holds shy of $5 billion in debt, more than five times higher than its $950 million market capitalization. For Q2 2023, HPP reported negative year-over-year growth in revenue (-3.46%), net income (-1,483.99%), EPS (-420%), net profit margin (-1,550%), and operating income (-55.32%). Scheduled to report Q3 earnings on November 2nd, HPP is projected to post $239 million in sales at –$0.20 per share. With a 10-day average volume of 4.75 million shares, HPP has a median price target of $6.50, with a high of $11 and a low of $4; this implies a price drop of almost 4% from where it currently trades. 

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Beef Up Your Long Term Gains With These Dividend Kings

For those who aren’t already in the know, “Dividend Kings” are publicly traded dividend stocks with a track record of increasing shareholder payouts for 50 or more consecutive years. These reliable investments have overcome market difficulties for decades. A few examples: 

❖ Periods of inflation 

❖ Fluctuating commodity prices 

❖ Market downturns 

❖ Shifts in consumer sentiment 

❖ Progress in modern technology 

These “kings” of income have excelled during challenging markets with growing dividends, and their potential for substantial returns is undeniable. Top analysts tell us to buy and hold… 

Parker-Hannifin Corp (PH) 

Established in 1917, Parker-Hannifin (PH) is a global industrial giant specializing in motion control systems, serving many major industries worldwide with diverse revenue streams and an extensive product portfolio. PH excels in tailored solutions, fostering lasting customer relationships while benefiting from high switching costs, usually due to patented, mission-critical components. PH’s business operations align with its growth, a history of successful acquisitions, and robust metrics. PH, one of the fastest-growing dividend kings, shows a steady earnings stream in a competitive market. 

PH is currently up year-to-date by 34.44% but is still trading near the middle of its existing range, which leaves it some upside. PH has a PEG ratio of 1.66x, positive TTM (trailing twelve-month) growth in assets and momentum, and a positive ROE (return on equity) of 21.73%. For Q2 2023, PH reported EPS of $6.08 per share vs. $5.49 per share as predicted by analysts, a 10.77% win, while it surprised analysts by 1.73% on revenue. PH also reported year-over-year revenue growth (+21.68%), net income (+450.30%), EPS (+449.49%), and net profit margin (+351.62%). PH is scheduled to report Q3 earnings on November 2nd and is projected to report $4.8 billion in sales at $5.18 per share, with a 3-5 year EPS growth rate of 17.6%

As it carries a free cash flow of $7.46 billion, PH has a 1.51% dividend yield, with a quarterly payout of $1.48 ($5.92/year) per share; its last dividend increase was by +11% in April. With a 10-day average volume of roughly 645 thousand shares, PH has a median price target of $460, with a high of $534 and a low of $300; this suggests the potential for a nearly 37% increase from where its price is now. 

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Illinois Tool Works Inc (ITW) 

Illinois Tool Works (ITW) is a global industrial and consumer equipment manufacturer known for its diversified product range serving various markets. ITW’s acquisitions and decentralized structure allow subsidiaries to retain their culture and operations while benefiting from collective resources. Unlike some conglomerates, ITW maintains profitability and diversified offerings, supported by excellent margins and consistently growing profits. With a solid financial standing and firmly holding an A+ credit rating, ITW has a remarkable dividend history dating back to 1964; it is expected to sustain a high-single-digit growth rate,

aligning with a focus on mission-critical products in niche markets. This places ITW among the well-managed industrial firms, showcasing its potential for predictable dividend growth. 

ITW is currently up year-to-date by 5.49%, trading close to its 52-week middle. With a positive 20/200 day SMA (simple moving average), ITW has an ROE of 95.87% and a TTM momentum growth measure of 23.83%. For Q2 2023 earnings, although missing slightly on EPS, ITW surpassed analysts sales projections and reported year-over-year growth in crucial areas such as revenue (+1.57%), net income (+2.17%), EPS (+4.64%), and net profit margin (+0.60%). For Q3, ITW is expected to post $4.1 billion in sales at $2.45 per share, with a 3-5 year EPS growth rate of 6.9%. ITW has a 2.41% annual dividend yield, with a quarterly payout of $1.40 ($5.60/year) per share and a 51.78% payout ratio; it last increased its dividend in August by 7%. With a 10-day average volume of roughly 950 thousand shares, ITW has a median price target of $250, with a high of $265 and a low of $188, representing the potential for a 14% price jump

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PPG Industries Inc (PPG) 

PPG Industries (PPG) stands as a global paint and coatings leader and caters widely to construction, industrial, automotive, marine, packaging, and aerospace markets. PPG’s specialty coatings, acting as heavy-duty paints, not only enhance aesthetics but also significantly extend product lifespans, especially for critical applications. PPG’s focus on high-value specialty products grants them pricing power and market leadership, with a variable cost structure and robust aftermarket sales ensuring strong cash flow and over a century of uninterrupted dividend payouts. Looking forward, PPG is strategically positioned for sustained dividend growth in a continuously expanding market. 

PPG is up year-to-date slightly by 1.81% (appropriately trading right in the middle of its existing range) and has a PEG ratio of 1.51x, with an operating free cash flow of $1.72 billion. For its Q2 2023 earnings call, PPG posted an EPS of $2.25 per share vs. $2.14 per share, as expected by analysts, a 4.91% win, also surprising revenue estimates by 0.76%. PPG also showed year-over-year revenue growth (+3.86%), net income (+11.11%), EPS (+11.35%), and net profit margin (+7.02%). Scheduled to report Q3 earnings on October 19th, PPG is projected to report $4.6 billion at $1.88 per share. PPG has a 2.03% annual dividend yield, with a quarterly payout of 65 cents ($2.60/year) per share, and its last increase was by 5% in July. With a 10-day average volume of 1.33 million shares, PPG has a median price target of $160, with a high of $180 and a low of $143; this represents the potential for an almost 41% leap from its current price. 

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The Titans of American Oil

In the late 1850s, the American oil industry was nothing more than an inkling in the minds of ambitious entrepreneurs. Among them was Edwin Drake, a former railroad conductor, who journeyed to Titusville, Pennsylvania, driven by reports of ‘rock oil’ seeping from the ground. Despite mockery from locals, Drake’s persistence led to the establishment of the first commercial oil well in 1859, a breakthrough that would forever change the American landscape.

But the story of oil is not just about the resource; it’s about the indomitable spirits of those who pursued it. Men like John D. Rockefeller, who entered the fledgling industry by investing in a Cleveland refinery. Rockefeller’s Standard Oil grew, absorbing competitors and innovating transportation and refining methods, eventually controlling 90% of America’s refineries and pipelines. His empire, though controversial, laid the groundwork for the modern oil industry.

Parallel to Rockefeller’s ascent, others like Samuel Dodd made legal strides, navigating corporate laws to establish trusts, reshaping the business landscape. Meanwhile, pioneers like Lyne Taliaferro Barret drilled the first oil well in Texas, and Patillo Higgins foresaw the potential of the Spindletop area, leading to a gusher that marked the Texas Oil Boom. These visionaries, though different in approach, were united by resilience, innovation, and sheer willpower.

From Barons to Modern Moguls: America’s Evolution Powered by Oil

The legacies of early oil barons set the stage for America’s global economic dominance. Towns like Tulsa and Beaumont transformed from sleepy communities to booming cities, known as the “Oil Capitals of the World.” The wealth generated from oil financed institutions, universities, and infrastructural projects, embedding the industry within the American identity.

Throughout the 20th century, the influence of oil magnates extended beyond business, impacting politics and society. The Mellon family, known for Gulf Oil, wielded significant political influence, with Andrew Mellon serving as the U.S. Secretary of the Treasury. Families like the Gettys and the Hunts became synonymous with wealth and philanthropy, their fortunes built on oil shaping cultural and artistic institutions.

However, the landscape wasn’t without conflict. Monopoly-busting laws fragmented giants like Standard Oil, spawning companies that remain industry leaders, like ExxonMobil and Chevron. Labor strikes, environmental debates, and geopolitical tensions over oil-rich regions underscored oil’s complexity in global economics and politics.

Oil’s Global Theater: Powering Economies, Shaping Conflicts

Oil, often termed ‘black gold,’ has been at the heart of global events, from both World Wars to the modern Middle East conflicts. Nations’ insatiable thirst for energy turned oil fields into strategic assets, influencing diplomatic relationships and military strategies. The 1973 OPEC oil embargo, a geopolitical maneuver in the Arab-Israeli conflict, demonstrated oil’s power, triggering economic shockwaves worldwide.

Today, oil’s influence permeates all economic sectors, from petrochemicals to transport. Fluctuations in oil prices can send global markets spiraling, affecting consumer products, from groceries to airline tickets. Developing nations, seeking the wealth that oil brought to countries like the United Arab Emirates and Saudi Arabia, grapple with ‘resource curses,’ where oil wealth doesn’t translate to societal benefit.

As climate change concerns mount, the industry faces existential questions, balancing profitability with environmental responsibility. However, even green technologies rely on oil for production components, making a complete departure from oil a distant reality.

Investing in Liquid Gold: Three Stocks for the Savvy Investor

Despite market volatility and geopolitical tensions, oil investment offers substantial returns. Here are three U.S. oil stocks representing the industry’s past, present, and future:

  1. ExxonMobil (XOM)
    • Overview: One of Standard Oil’s successors, ExxonMobil stands as the largest direct descendant. Despite recent challenges, its diversified portfolio, spanning from upstream to downstream operations, presents a stable investment.
    • Analysis: With strategies addressing environmental concerns and investments in sustainable energy, ExxonMobil aims to retain market relevance, offering long-term investment security.
  2. Chevron (CVX)
    • Overview: Another Standard Oil offshoot, Chevron, commands respect in the industry. Its global presence and balanced energy portfolio make it a formidable ExxonMobil counterpart.
    • Analysis: Chevron’s commitment to lowering carbon emissions and its robust capital allocation strategy favor risk-mitigated, long-term growth, appealing to environmentally conscious investors.
  3. ConocoPhillips (COP)
    • Overview: The world’s largest independent exploration and production company, ConocoPhillips has a history stretching back over a century.
    • Analysis: With a focus on high-margin, low-cost projects, and a forward-looking approach to renewable energy investment, ConocoPhillips offers a blend of stability and innovation.

Conclusion: The Undying Legacy of American Oil

From Edwin Drake’s first oil well to today’s energy conglomerates, oil’s saga is a testament to human ingenuity and ambition. As we stand on the cusp of renewable energy frontiers, oil’s historical significance and future potential remain undeniable. For investors, these stocks are not just financial instruments but tickets to a continuing journey, a saga of triumph, tribulation, and the relentless human spirit.

Where to invest $500 Right Now?

Before you consider buying any of the stocks in our reports, you’ll want to see this.

Investing legend, Marc Chaikin just revealed his #1 stock for 2024

And it’s not in any of our reports.

During his career of nearly 50 years, Marc Chaikin was one of the quantitative minds behind some of the most famous investors in history: Paul Tudor Jones, George Soros, Steve Cohen, and Michael Steinhardt.

Even the Nasdaq hired him to create three new indices.

And now he’s going live with his #1 pick for 2024.

You can learn all about it on Mr. Chaikin’s Website, here.

Wondering what stock he’s investing in?

Click here to watch his presentation, and learn for yourself

But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream… And by then, it could be too late.

Click here to reveal the name and ticker of Marc Chaikin’s no. 1 pick for 2024


Starlight Riches: The Tale of a Space Prospector

In the late 1970s, amid the Cold War’s space race, a lesser-known narrative unfolded. Jacob “Jake” Mattingly, a geologist and bona fide dreamer, believed space held untapped wealth, akin to the gold rush that once swept through his home state of California. While NASA and the Soviet space program were locked in a battle of cosmic proportions, Jake set his sights on asteroids, convinced they were laden with precious metals.

Armed with nothing but indomitable spirit, a telescope, and rudimentary calculations, Jake would gather with like-minded enthusiasts under clear night skies, charting and theorizing. They were the outliers, the dreamers not in pursuit of political victory but cosmic fortune. Though Jake never lived to see his aspirations realized, his diaries, detailing what many called ‘the ramblings of a space prospector,’ would decades later become a foundation for space mining ventures.

Beyond the Stratosphere: The Economic Potential of Space

Jake’s foresight is only now coming into fruition. The space economy extends beyond governmental space programs; it encapsulates various industries, including satellite telecommunications, space exploration, and even tourism. With the privatization of spaceflight (companies like SpaceX and Blue Origin leading the charge), a new era dawns.

The potential economic impact is staggering. Morgan Stanley estimates the global space industry could generate revenue of more than $1 trillion by 2040. We stand on the precipice of the next significant economic revolution, one not confined by Earth’s physical boundaries.

Investing Among the Stars: Three Space Economy Stocks

As we brace for this new economic frontier, several companies are poised for significant roles in the space economy. Here are three such enterprises, presenting intriguing investment opportunities:

  1. SpaceX
    • Overview: Though not publicly traded, SpaceX is central to the space economy conversation. Its achievements in reducing space travel costs and ambitious projects, like the Starlink satellite constellation, show its potential.
    • Analysis: Should SpaceX go public, its pioneering technology and contracts with various space agencies make it a prime candidate for investment.
  2. Virgin Galactic (SPCE)
    • Overview: Virgin Galactic is forging a path in space tourism, promising a future where suborbital spaceflights are accessible to more than just astronauts.
    • Analysis: As one of the few publicly traded commercial spaceflight companies, Virgin Galactic represents a unique investment opportunity. Its success hinges on regulatory approval, successful launches, and consumer adoption.
  3. Northrop Grumman (NOC)
    • Overview: A defense contractor involved in aerospace and cybersecurity, Northrop Grumman provides products and solutions for various government and commercial customers.
    • Analysis: With steady government contracts and a role in NASA’s Artemis program, Northrop Grumman offers a less speculative investment avenue into the space economy.

Conclusion: The Infinite Horizon

The cosmic dreams of Jake Mattingly and his fellow enthusiasts no longer seem fantastical but achievable. The space economy, once the playground of science fiction and superpowers, is now a burgeoning sector with tangible investment opportunities. It promises not just financial returns but the thrill of contributing to humanity’s next giant leap. As private and public interests continue to align, propelling us further into the cosmos, we don’t just participate in a new market; we become part of a legacy of exploration and discovery.

Where to invest $500 Right Now?

Before you consider buying any of the stocks in our reports, you’ll want to see this.

Investing legend, Marc Chaikin just revealed his #1 stock for 2024

And it’s not in any of our reports.

During his career of nearly 50 years, Marc Chaikin was one of the quantitative minds behind some of the most famous investors in history: Paul Tudor Jones, George Soros, Steve Cohen, and Michael Steinhardt.

Even the Nasdaq hired him to create three new indices.

And now he’s going live with his #1 pick for 2024.

You can learn all about it on Mr. Chaikin’s Website, here.

Wondering what stock he’s investing in?

Click here to watch his presentation, and learn for yourself

But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream… And by then, it could be too late.

Click here to reveal the name and ticker of Marc Chaikin’s no. 1 pick for 2024


Our 3 Favorite EV Stocks for 2024

In the heart of Motor City, Detroit, during the tumultuous 1960s, a young engineer named Robert Williams worked tirelessly on what his peers considered a ‘fantasy project.’ While others scoffed, Robert, employed in one of the most prominent American automotive companies, believed electric cars were the future. He had witnessed firsthand the smog and pollution traditional automobiles caused and understood something had to change.

One day, Robert unveiled a prototype in the company’s courtyard: a sleek, noiseless car that ran solely on electricity. Though his invention was far from perfect, it sparked a conversation that would simmer for decades before exploding into the mainstream automotive industry.

Journey to the Present: The Electric Vehicle Surge

Fast forward to today, and the world finds itself in the midst of an electric vehicle (EV) revolution. What started as a dream in the minds of visionaries like Robert Williams has accelerated into a global movement. Governments worldwide, recognizing the environmental crises looming on the horizon, have begun incentivizing EV production and purchase, signaling a significant shift away from fossil fuel dependence.

The EV market’s potential has attracted a new wave of innovators and investors. With advancements in battery technology, infrastructure planning, and consumer sentiment, electric cars are no longer just a niche product but are on track to become the automotive industry’s cornerstone.

Charging Ahead: Three Stocks Driving the EV Revolution

As the sector expands, several companies are emerging as leaders and innovators. Here are three stocks that investors should watch closely:

  1. Tesla, Inc. (TSLA)
    • Overview: No discussion of EVs is complete without mentioning Tesla, the company that brought electric cars into the spotlight. Beyond their popular vehicle lineup, Tesla is also a leader in battery technology and renewable energy solutions.
    • Analysis: Tesla’s stock has experienced remarkable growth, and its global market expansion and diversification into other renewable areas make it a potentially strong long-term investment.
  2. NIO Inc. (NIO)
    • Overview: Known as the “Tesla of China,” NIO has made significant strides in the premium electric vehicle market. It also boasts a unique Battery as a Service (BaaS) subscription model.
    • Analysis: With China being the largest EV market, NIO is well-positioned for growth. Its innovative approach to battery technology and government support in China could drive the stock higher.
  3. ChargePoint Holdings, Inc. (CHPT)
    • Overview: While not a car manufacturer, ChargePoint creates the critical infrastructure needed for EVs. It operates one of the largest online networks of independently owned EV charging stations.
    • Analysis: As the shift to electric vehicles continues, the demand for charging infrastructure will grow. ChargePoint’s established presence and partnerships with various entities present a compelling investment opportunity.

Conclusion: Navigating the Road Ahead

Robert Williams might never have imagined how his vision would impact the world. Today, as we stand on the brink of an era dominated by electric vehicles, we see a future that is not only sustainable but also filled with opportunity. The companies leading this charge are not just selling cars, batteries, or subscriptions – they are offering a chance to reshape what transportation means.

Investing in the electric vehicle market is more than a mere financial venture. It’s a commitment to a cleaner, more sustainable future, echoing the aspirations that pioneers like Robert Williams harbored in their inventive hearts. As this industry accelerates, it promises to carry us into a new age, redefining mobility, energy, and our global environmental footprint.

Where to invest $500 Right Now?

Before you consider buying any of the stocks in our reports, you’ll want to see this.

Investing legend, Marc Chaikin just revealed his #1 stock for 2024

And it’s not in any of our reports.

During his career of nearly 50 years, Marc Chaikin was one of the quantitative minds behind some of the most famous investors in history: Paul Tudor Jones, George Soros, Steve Cohen, and Michael Steinhardt.

Even the Nasdaq hired him to create three new indices.

And now he’s going live with his #1 pick for 2024.

You can learn all about it on Mr. Chaikin’s Website, here.

Wondering what stock he’s investing in?

Click here to watch his presentation, and learn for yourself

But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream… And by then, it could be too late.

Click here to reveal the name and ticker of Marc Chaikin’s no. 1 pick for 2024


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The Titans of American Oil