Your Biggest Takeaway From The Big Debate

As I’m sure you know from the hundreds of emails that you’ve most likely received lately…

I just went toe-to-toe with Marc Lichtenfeld in The Big Debate.

If you watched it live, then you know who came out on top…

Spoiler alert… It wasn’t Marc.

Now that the results are in, I wanted to quickly follow up and reveal to you what I believe was the biggest takeaway.

It all comes down to this powerful chart…

 

Yes, these facts are indisputable…

The average sale price of homes in the United States has been on fire.

The single most valuable asset owned by the overwhelming majority of Americans is their home. And right now, that asset is exploding in value.

So my argument is simple…

As long as home prices remain elevated, the stock market will not crash.

Just consider the facts…

According to Freddie Mac, the house price index (which measures home value appreciation) is up 11.3% this year.

But what about rising interest rates, you ask? Will they derail the housing market?

According to Goldman Sachs, higher rates are unlikely to derail the strength of the U.S. housing market.

Okay, but what about the last time that home prices moved up like this – and triggered a housing bubble?

Well, if you recall, the last housing bubble was caused by interest-only loans created by lenders like Countrywide Financial and Washington Mutual – both of which are no longer in existence.

That sort of reckless lending – which allowed people to move into multimillion-dollar houses by essentially passing an “honor system/wink, wink” credit check – is simply not happening in today’s market.

And that leads me to Home Depot (NYSE: HD).

 

Action Plan: While home prices remain elevated, shares of Home Depot appear quite attractive. As you can see, they’ve retraced back down to the $300 support level – which I consider a very attractive entry opportunity. In fact, we hit a quick winner on Home Depot calls in The War Room this morning, so this idea is already starting to work. But I’m getting ahead of myself.

If you have NOT YET watched The Big Debate: Will The Market Crash in 2022?, then you need to get yourself caught up. Click here to watch it. And I’ll warn you in advance: I land a number of laugh-out-loud zingers at Marc’s expense that you will not want to miss! This just might be the best debate you’ll ever see – so check it out now!

Launch The Big Debate!

P.S. Our friends at The Oxford Club are launching a FREE online training event that will show you how to transform your wealth through stock options. It’s entirely free, and it goes live on Thursday, May 5, at 9:30 a.m. ET. Click here to reserve your spot today.

Monday Market Minutes:

  • Fed Up With Inflation? The Federal Reserve is expected to raise its discount rate by 50 basis points. We’ll be looking to see if there’s any discussion of signs of economic or inflation moderation. Tracking.
  • Brutal Friday: In what’s becoming an uncomfortable 2022 trend, we saw another brutal sell-off last Friday to close the week. We were prepared in The War Room, though, and took two quick winners. With more weakness expected, War Room members should be doing even better in the weeks ahead. Click here to see how you can join the action for FREE.
  • Buffett Goes Shopping: On Saturday, Warren Buffett revealed that he’s bought more than $51 billion worth of stocks this year, boosting stakes in Chevron (NYSE: CVX), Occidental Petroleum (NYSE: OXY) and Apple (Nasdaq: AAPL).
  • Accolade Rebounds: Today, Wells Fargo analyst Stan Berenshteyn upgraded Accolade (Nasdaq: ACCD) from “Underweight” to “Equal Weight” and lowered the company’s price target from $9 to $6. The analyst noted that shares traded down about 50% on April 29.
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