Homebuilders to Benefit Off Coming Fed Cycle

Editor’s Note: We’ve got something big going on this week in Monument Traders LIVE.

Bryan Bottarelli and Karim Rahemtulla will be going live on Thursday, Aug. 22 at 2 p.m. EST to help you prepare for a potential bombshell data release.

On Friday, Sept. 6, new employment data will be released that could rock the entire markets, and we’re going to show you exactly how we’re playing it this Thursday.

Last time an event like this happened, a unique trade could have led to a max gain of 135.39% overnight!

And we believe this next one could be even bigger.

Click here to get on the guest list for our FREE Bombshell Jobs Report Live Event on Thursday.

-Ryan Fitzwater, Publisher


For quite a while, first-time homebuyers have been quite frustrated.

And no wonder.

With interest rates so high…

And home prices holding strong at such elevated premiums…

And no ability to save enough money for a down-payment…

First-time homebuyers are stuck in a no-win situation.

For years, it’s been an unaffordable waiting game.

Just wait… and wait… and patiently wait for the right time to make a move.

But luckily, that waiting game could now be coming to an end.

Later this week (specifically at 10 a.m. EST this Friday morning), the Fed is widely expected to introduce the beginning stages of their next major policy change.

For example, as amazing as it sounds, we could see the first Fed rate cut in 4 years.

But as always, to successfully navigate this policy adjustment, it must come with an incredible amount of finesse and delicacy.

After all, the Fed’s job right now is to keep the economy growing at just the right amount – without triggering the risk of recession OR prolonged inflation.

It’s threading the needle at the highest level – which is why many consider this latest Fed announcement like the Super Bowl of Fed meetings.

And for first-time homebuyers, it could mark the beginning stages of what they’ve been waiting patiently for.

You see, with a rate cut expected for September, this could be the trigger that fuels homebuilder stocks.

Lower rates – and a backlog of starter-home demand – could impact DR Horton (DHI), which is the largest starter-home builder in the US.

Right now, 5 million millennials are ready to be first-time homebuyers – and most likely – they’ll find their way into a DHI house.

Currently trading at 10.8x earnings, it’s a discount compared to the S&P 500’s current valuation of 20x earnings.

DR Horton a Bargain Right Now

Another beneficiary could be Toll Brothers #TOL, who is scheduled to report earnings later this week (specifically, this Tuesday after the close).

Both names are now “in play” as the new rate-cutting cycle begins.

Logo

YOUR ACTION PLAN

This upcoming Fed rate-cutting cycle could be the trigger to give homebuilding stocks a boost. If you want to own all of them at once, I like the idea of holding a basket of homebuilder names, which offers you exposure to the entire group. The best way to do this is using the SPDR S&P Homebuilders ETF (XHB). To see exactly how we’re trading it, you should join Catalyst Cashouts. We go live tomorrow at 2:00 PM EST, and that’s when I’ll issue a new trade to take advantage of this critical new rate-cutting cycle. Join Cashouts today – and then join us LIVE tomorrow to get your newest trade!

Yes! Sign Me Up for Cashouts – So I Can Get Your New Trade Tomorrow!

P.S. “Come Meet Myself, Karim, & Your Fellow Monument Trader’s Alliance Members – Live And In Person. Best Of All, Attendance (For You) Is Free!”
– Monument Traders’ Alliance Co-Founder Bryan Bottarelli

Today, I’m coming to you with a very special invitation. You’re the first to get invited to the inaugural Monument Trader’s Alliance Meet-Up! Meet-Ups are your chance to meet, collaborate, and engage with Monument Trader’s Alliance – live and in person! Come meet myself, Karim, your fellow Monument Trader’s Alliance Members – live and in person. Best of all, attendance (for you) is free! Plus, your first drink is on us! Just tell us you’re coming – and you’re in!

Details

When: Thursday, September 26th from 6:00 PM to 9:00 PM CST

Where: Rivers Casino, 3000 S. River Road Des Plaines, IL 6001

RSVP Below & You’re Confirmed!

RSVP HERE

*IMPORTANT NOTE: This is an In-Person event only. There will not be a livestream or zoom option. Please only sign up if you’re in the Chicagoland area – and you can attend in person.


Chart

MONDAY MARKET MINUTE

  • Get Ready for a volatile ride: We are entering a very consequential few weeks. From the Fed meetings, the DNC, Fed rate announcement, the general election and another earnings season. This is the perfect opportunity to use long-term LEAPs and position size. Tracking.
  • Notable earnings this week: A few notable companies reporting include major retailer Target (TGT) and tech groups Wolfspeed (WOLF) and Snowflake (SNOW).
  • Election winners: Karim and I have spoken about our top election-winner picks in the past – but I wanted to reiterate the bullishness on defense/aerospace plays right now. No matter who wins the election in November, this sector is set up for success – as both parties are pro-defense.
  • Oil play bounces back: I wrote about Chevron (CVX) as a potential dip buy in the watchlist last week, and this morning War Room members rang the register for a 24% winner in less than 24 hours. Keep an eye on your inbox every morning for more daily watchlist picks like CVX.

Popular posts