The countdown clock is ticking to the Federal Reserve’s meeting this week.
On Wednesday to Thursday, the Fed will decide on how much to increase its benchmark rate as it tries to tame inflation.
The market is broadly pricing in another 75-basis-point hike — which would be the third of its kind this year — while bracing for an economic recession.
Is a recession inevitable, at this point?
According to Senior Analyst Tony Sagami, editor of Disruptors & Dominators, it may be:
My number one reason is because real estate is falling in price.
All around the country, mortgage rates are up, and real estate prices are falling. I don’t think you can have a rapid recovery when real estate prices are declining.
From that standpoint, I would be worried about a recession, but I don’t think it’s going to be a severe and depressing one.
Besides, the point where the stock market hurts the most is the anticipation of a recession, not the recession itself.
The stock market is a forward-pricing mechanism. It’s looking at six to nine months forward and is already anticipating the Fed starting to become more friendly, and not as hostile as it has been.
The opportunity is when they start to stop raising interest rates. That’s when the stock market will skyrocket.
Tony’s trading service, Disruptors & Dominators seeks out new, emerging industries, and selects the companies most likely to dominate them.
Members are sitting on open gains of 62%, 46% and 35%.
Tony says despite recession concerns, consumers are pouring money into the leisure and entertainment sector.
In fact, Americans spend about 5% of their income on leisure activities … more than the roughly 3% spent on clothing.
In today’s five-minute video segment, Tony names a handful of rising stocks. With many different types of stocks falling under the leisure umbrella, there are several pockets of the sector where investors can capitalize.
He says right now stocks are cheap and spending is growing:
Understand that 5% of total gross domestic product spending is on leisure and entertainment.
The total U.S. GDP is about $23 trillion. If you take 5% of that, you’re talking about $1.1. trillion.
That’s a big spending chunk and it shouldn’t be overlooked!
Any time you start talking about trillions, there’s a lot of profits being made by somebody.
And that somebody should be you by including certain stocks in your portfolio.
I’m talking about giant corporations that are not going to disappear and will continue to do well.
Leisure and entertainment stocks create a good growth vehicle for the future.
In this insightful video, Tony and I discuss:
• An industry projected to reach $600 billion by 2030, which he believes may even “woefully underestimate” growth.
• A company he calls a fast-rising star in a booming segment.
• A diverse exchange-traded fund comprised of blue-chip companies.
And much more.
The information in this short segment couldn’t be timelier. Just go to the video box above to watch it now.
Happy investing!
Jessica Borg
Financial News Anchor
Weiss Ratings
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