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What to do if you own Home Depot, Lowe’s, or Target

Nov 16, 2022

Good morning!

The markets are down in early going following earnings from the likes of Lowe’s and Target. Home Depot reported yesterday…

Traders are worried about a “soft holiday quarter.”

Ya think??!!

We’ve been talking about this for, oh, I dunno… the last six months.

Here’s my playbook.

Home improvement stocks: Buy or sell?

Home Depot reported solid earnings yesterday, beating revenue and earnings by 2.39% and 2.99%, respectively. Lowe’s and Target report today. All three are down in premarket action as I type, but that could easily change as the computers hunt for bargains. (Read)

I say, sell all three if you haven’t already. Guidance and growth projections are limbo-bar low, which simply doesn’t add up in the face of rising consumer debt, falling savings, and a housing market on eggshells.

Coincidence? I think not: US digital dollar pilot starts now

Big banks and the NY Fed are starting a digital dollar plot—er, pilot—intended to test digital tokens for wholesale transactions. Names include Citi, HSBC, Wells Fargo, and Mastercard, among others. (Read)

The goal is digital clearing to improve the settlement process. It’s not a coincidence that my favorite bank has been quietly working on this since 2017. Upgrade to paid

What I want to know is whether or not it’s programmable. Why? Imagine your money can be spent ONLY on specific, pre-approved items. The implications are staggering when it comes to welfare, retirement savings, medical bills, and, of course, taxes.

Read this if you think I’m crazy. It’s from the Fed’s own working papers on… you guessed it… programmable money. (Read)

I was born in the middle of the night, but not last night!

Spoiler Alert: EVs are least reliable 🤦‍♂️

Consumer Reports determined that EV vehicles are among the least reliable cars and trucks on the road. (Read) Greenies the world over will go apoplectic.

My POV: EVs are great, and there’s no question we need to go that direction. However, they’re not ready for prime time—and won’t be until the tech is good enough that people prefer them over gasoline alternatives and they’re priced accordingly (at prices the average person can actually afford)!

Right now, there are only three companies on the planet making EV vehicles “worth it” as measured by sales. I’ve recommended all three in One Bar Ahead® Get the stocks

Forget how "strong" the USD is; China doesn't care

Investors ask me frequently about the “strong” USD. Most are suitably stunned when I say it doesn’t matter in the scheme of things.

There are huge swaths of the planet that want to do business in yuan, and how strong or how weak the USD is doesn’t matter. Case in point, Argentina just agreed to a $5 billion currency swap with China in yuan to defend its currency, the peso. (Read)

Trade Idea: Short the USD/Buy the yuan.

Meme of the Day

*Breaking: President Biden has apparently asked Nancy Pelosi to remain in Congress—as director of trading.

Not really, of course. But the point’s been made all too graphically, and many times at that.

All joking aside, anybody on the sidelines right now has two problems: A) the markets are trying to bottom, and B) they risk getting caught on the sidelines flatfooted if the Fed actually does “slow” as recently alluded to by Lael Brainard. Meanwhile, reinvesting helps lower risk, raise profit potential, and boost compounding.