Dividend Investing Weekly: Market Reaches a Hard Fork in the Road

You are receiving this email because you signed up to receive our free e-letter Dividend Investing Weekly, or you purchased a product or service from its publisher, Eagle Financial Publications. [Dividend Investing Weekly] [Cash Machine]( [Quick Income Trader]( [Breakout Profits Alert]( [Hi-Tech Trader]( Market Reaches a Hard Fork in the Road by Bryan Perry Editor, [Cash Machine]( 04/24/2023 Sponsored Content [Unusual Passive Income Investment (Found on a Golf Course)]( One man turned $1,000 into a decadeslong passive income stream... eventually reaching $100,000 per year! All from a single golf course tip. [CLICK HERE TO FIND OUT HOW HE DID IT]( The next two weeks are likely to be where the S&P finally breaks out of its tight trading range of 4,100-4,150. The number of conflicting data points, adjustments in earnings guidance and Fed rhetoric are giving rise to the notion that the market has to break one way or the other. This past week saw the mighty tech trade with a notably cautious tone as pre-earnings estimates were lowered on several of the leading tech titans. At the same time, the market might reward all the cost-cutting and belt-tightening within the tech sector when companies report their numbers. Hard to say, but investors will know soon enough. And then, there’s the debate on inflation that doesn’t look likely to be settled anytime soon, at least not after last Friday’s PMI reports that both came in hotter than forecast. The Flash Purchasing Managers’ Index (PMI) from S&P Global was surprisingly strong. The services sector posted a 12-month high of 53.7, considerably higher than the 51.5 expected and higher from last month’s 52.6 reading. The manufacturing sector, mired in a multi-month contraction, rebounded sharply, reaching 50.4, a five-month high. The 50.4 level was well above forecasts of 49.0 and was higher than last month’s 49.2, bringing more confusion just after Thursday’s release of initial and continuing unemployment claims showing a continued slowing in the labor market. “Executives from both the goods and services sectors reported strong purchasing activity, robust hiring and elevated output," said Jose Torres in an [article]( for Traders' Insight. "At the same time, however, cost pressures accelerated significantly, leading to renewed inflation concerns against the backdrop of a still-hawkish Federal Reserve. Prices in both sectors rose at the fastest pace since September of last year. Taken together and consistent with our in-house inflation models and the [Cleveland Fed’s inflation nowcast](, April inflation is expected to be significantly hotter than March.” [America’s Hedge Funds Are Loading Up on This Stock. Are You?]( What do the world’s smartest and richest investors know that you don’t? Well, for one, they know about a small resource company whose stock is on a startling trajectory. Not only that, they know it's paying a whopping 25.02% dividend. Over 603 institutions are piling into this fast-growing stock and its robust dividend. Don't get left out. Follow the smart money for oversized dividend payouts in 2023. [Click here to get in ASAP.]( Before the Fed meets again on May 3, they will have the benefit of hearing from the nifty-fifty S&P 500 companies that matter most to market sentiment, while receiving key economic reports that include the S&P Case-Shiller Home Price Index, Consumer Confidence, Durable Orders, Unemployment Claims, Employment Cost Index, Chicago PMI and the Fed’s favorite inflation indicator, Personal Consumption Expenditures (PCE) index. Collectively, these data points are very important, but last week’s PMI reports pretty much locked in a tenth rate hike, while also raising the probability of yet another hike in June. Chart from [The Federal Reserve Bank of Cleveland]( Good news from the strong PMI readings seemingly triggered a shift in the narrative back to sticky inflation, higher rates for longer, stable dollar, lower oil prices, lower gold prices and more pressure on the consumer. Hence the sloppy and choppy price action for much of the market for the past week. But if market participants are truly worried about a potential leg lower for stocks in the coming days, why then is the CBOE Volatility Index (VIX) trading at a new 52-week low? Seems awfully complacent. [Surprise Yourself, Predict Trends with A.I.]( Imagine a trading tool powered by A.I. to help you search, pick and predict stocks 1 - 3 days ahead with up to 87.4% proven accuracy. Because risking your money without the best trading tool in the market is no way to start the year. [Count Me In - >]( Sometimes it’s OK to admit that one just doesn’t know. Soft landing, hard landing, crash landing, or how about no landing? I think the idea of the earnings troughing in the current second quarter is a valid one as the economy learns to live with the price increases it has had to absorb, especially with the ongoing tight supply of housing. According to FactSet, analysts are looking for a second-half rebound in profit margins, which makes sense. Coming out of the Great Recession, companies posted record profits on lower sales growth due to broad cost-cutting measures and the implementation of more efficient processes. This time around will be not different. Inflation is forcing radical changes in workforce procedures, cost of goods management and whatever measures can drive enhanced productivity. The resultant effect is the creation of leaner and meaner corporations where earnings growth will recover after the Fed pauses and the 11 rate hikes work through the system. But for now, when someone asks where the market is headed, or what about inflation or are we headed into a recession? It’s perfectly OK to say, “ask me in two weeks, and I’ll tell you then.” P.S. Come join me and my Eagle colleagues on an incredible cruise! We set sail on Dec. 4 for 16 days, embarking on a memorable journey that combines fascinating history, vibrant culture and picturesque scenery. Enjoy seminars on the days we are cruising from one destination to another, as well as dinners with members of the Eagle team. Just some of the places we’ll visit are Mexico, Belize, Panama, Ecuador and more! [Click here]( now for all the details. Sincerely, [bryan-perry-sig] Bryan Perry Editor, Cash Machine Editor, Premium Income PRO Editor, Quick Income Trader Editor, Breakout Options Alert Editor, Micro-Cap Stock Trader About Bryan Perry: [Bryan Perry]Bryan Perry specializes in high dividend paying investments. This weekly e-letter combines his decades-long experience in income investing with a simple, easy-to-read format that investors of all stripes can work into their portfolios. Bryan also serves as Editor of these services: [Cash Machine]( [Premium Income PRO]( [Quick Income Trader]( [Breakout Profits Alert]( [Hi-Tech Trader]( and [Micro-Cap Stock Trader](. To ensure future delivery of Eagle Financial Publications emails please add financial@info2.eaglefinancialpublications.com to your address book or contact list. View this email in your [web browser](. This email was sent to {EMAIL} because you are subscribed to Bryan Perry's Dividend Investing Weekly. To unsubscribe please click [here](. If you have questions, please send them to [Customer Service](mailto:customerservice@eaglefinancialpublications.com). Legal Disclaimer: Any and all communications from Eagle Products, LLC. employees should not be considered advice on finances. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. 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