The final fiscal quarter of 2025 begins this week …
And IRVING’s AI just told us how to start it off right.
As you know, the Fed began the slow process of reducing interest rates at its meeting earlier this month.
Futures traders are already heavily betting on a second cut at its October meeting … and a third cut in December.
While your model doesn’t necessarily focus on rate cuts, it does factor in macroeconomic shifts. That happens through the price action of the thousands of stocks it models out.
So, this cycle’s “buys” share an interesting characteristic. Which is that they seem to be predicting a lower-interest-rate world.
I’ll introduce them to you now. And see if you agree:
Buy these five stocks:
- Ares Capital (ARCC)
- Sixth Street Specialty Lending (TSLX)
- Hess Midstream (HESM)
- PennantPark (PNNT)
- AptarGroup (ATR)
While they don’t necessarily have any shared features on the surface, pop the hood and you’ll see it.
Just look at all those dividend yields:
Four of them pay huge dividends to shareholders. The final one, Aptar, is still a solid payer with a history of increasing its payouts.
We note this, not because we hold long enough to collect many dividends here with this strategy …
But because investors typically favor dividend stocks in falling-rate environments like this one.
Your model is clearly favoring an influx of investment into these beaten-down high yielders.
That’s not all; it suggests you do this week.
Two of your current holdings remain high on the list of potential winners for this cycle:
- Sprouts Farmers Market (SFM)
- Brinker Int’l (EAT)
Sprouts remains on IRVING’s list because nothing fundamentally changed in this high-growth grocery brand.
Its stock has fallen on no news. In fact, it looks severely oversold. But oversold or overbought stocks can always get even more oversold/-bought.
It’s always a good portfolio management strategy to stop and evaluate a stock like SFM.
To look at why the AI continues to have confidence in it.
And to decide whether the pullback is an opportunity.
We did that last trading cycle, when we recommended you buy a second tranche of SFM to dollar-cost average into a lower cost basis.
This week, we recommend you do the same again, since we don’t have a full 20 stocks with high probabilities of going up. The same goes for Brinker.
Of course, you can and should do whatever is best for your personal financial situation and risk tolerance.
But IRVING’s AI continues to suggest a rebound for both stocks.
So, for Dr. Martin Weiss’ portfolio, we’ll be buying a second tranche of shares in EAT … and a third in SFM.
Of course, we’ll only do so after you’ve had time to make all these trades first.
That leaves the remaining plays from last cycle.
Here’s what we recommend …
Sell:
- ESAB (ESAB)
- Novartis (NVS)
- Carrier Global (CARR)
All three fell off our list.
So, it’s time to exit those with a small net loss.
At current prices, it looks like we can get out of NVS for just above breakeven … ESAB for just under breakeven … and CARR with about a 2% loss.
Put that money to better use in the seven we’re taking into the early part of Q4.
Get all those orders in.
And be sure to mark your calendar for Tuesday, Oct. 7. That’s our next trading day.
Until then …
Take care,
AL Qureiyeh
