The Spotlight Is On Powell’s Speech Today

[CLICK HERE JOIN OUR LIVE TRADING & TRAINING SESSIONS]( Hello investor, The Spotlight Is On Powell’s Speech Today Nvidia’s blockbuster sales outlook failed to spark a rally in the market, as the Nasdaq sold off by 1.87% before Fed Chair Jerome Powell’s speech scheduled for today. The AI chipmaker began the day being up as much as 6%, but the gains were wiped out throughout the day. What was going on? Max Wasserman of Miramar Capital thinks the markets already priced in big growth from Nvidia and may need a breather. - “It’s sort of like sell the news,” said Max Wasserman, founder of Miramar Capital. - “Nvidia had great numbers, blow-away numbers, but the market already reflected that. Investors may be realizing that we’ve had such a big run in the market, so let’s take a little profit before the Fed throws cold water on it. And if it doesn’t, they’ll come right back in.” Max Wasserman, founder of Miramar Capital (Photo: CNBC) Wall Street has moved on from Nvidia. The next spotlight is Powell’s speech scheduled at 10:05am ET. The Fed chair is expected to be vague with the path forward because the central bank still doesn’t know if inflation could keep falling at the current rates. So, it is likely to be a meeting-to-meeting thing. 78% of investors expect Powell to focus his message on being data dependent, according to a survey conducted by 22V Research. - “If Powell focuses on data dependency, that ought to help 10-year yields stabilize,” said Dennis DeBusschere, founder of 22V Research. Former Treasury Secretary Larry Summers thinks the “neutral interest-rate" (which doesn’t simulate or restrict economic activity) needs to be higher than it is now. So, if the central bank hints at revising the neutral rate higher, it could reset the valuation for the stocks. But Krishna Guha at Evercore ISI doubt that Powell will say something surprising and will stick to a neutral message. - “Expect a balanced assessment with no abrupt hawkishness, but no ‘Mission Accomplished’,” Guha said. “The Fed has not come this far to let inflation slip out of its grasp.” Retail vs. Institutions: Retail investors are turning bearish while institutional investors are jumping back into the markets, according to the American Association of Individual Investors’ survey. There are more bears than bears for the retail sentiment for the first time since June. (Source: Bloomberg) Bank of America said retail clients exited stocks for two straight weeks. However, institutions and hedge funds brought $4.4 billion into the market – the biggest inflow in two months among the bank’s clients. Who will be right? We shall see.  Own This Boring Business With Big Free Cash Flow Today’s Pick: Celanese Corporation ([CE]() Want to see the power of compounding? Believe it or not, you just need 25.89% annual growth to achieve 1,000% growth in the next ten years! Think about this: Why would you bet on a risky stock with a 0.1% chance of reaching 1,000% gain… when… you could easily invest in a wonderful business that grows 15-20% a year with little risk? This concept is so simple, don’t you agree? Jeff Bezos asked the same question to Warren Buffett. Mr. Bezos couldn’t believe how simple Mr. Buffett’s investment thesis was. Why doesn’t anybody just copy Buffett? Buffett answered, “Because nobody wants to get rich slow.” Because you are a subscriber of TradeAlgo, you’re one of those savvy investors who understand the magic of compounding interest. And that’s what we have for you today. Namely, how do you like the idea of earning about 7% annually from shareholder yield only? This means, of course, dividends and share repurchases. Just look at the graph from Celanese’s last Investor Day back in 2021 (which was the most recent presentation slides that they had): (Source: Celanese) No wonder why Warren Buffett’s Berkshire Hathaway had added Celanese with a stake worth more than 4.92% of the company. Now, do you see the number inside the orange box above? Over $6 billion returned to the shareholders over the last decade. Once again, Buffett loves companies that generate plenty of free cash flow. Sure enough, Celanese expects to generate about $1.3 billion in free cash flow this year – or 10.8% of its market cap! Now, what is this business? Celanese is a chemical company who produces chemical substances and materials. These are key ingredients in countless of products in paints and construction materials, clothes, medical devices, pharmaceuticals, electronics components, even food. About 95% of Celanese's products rank either first or second in their markets. Their chemicals have thousands of end users: (Source: Celanese) A perfect dividend stock: Celanese has a current dividend yield of 2.38. What makes it remarkable is that its dividend per share was $0.27 for the year of 2012. Fast forward to ten years later. It has forward dividend of $2.80 per share. That’s about 1,000% growth in dividend per share! And here’s another good news: Celanese is trading at a P/E of 10 You will not need to pay through the nose for this boring, but wonderful company. A recent acquisition: Celanese is in process of swallowing a whale in 3M’s M&M (Mobility & Materials) business. The size of the acquisition is a whopping $11 billion. That’s nearly the full size of Celanese’s current market cap of $12 billion. As a result, Celanese expects this acquisition to help the company doubling its free cash flow over the next 5 years, according to its investor presentation. Plus, it expects the acquisition to add extra 5% to its 5-year sales CAGR. (Source: Celanese) Bottom line: You can’t ever go wrong with Celanese. It has extremely stable earnings with dozens of earnings streams in various industries. Most importantly, it generates massive cash that delivered a 1,000% growth in dividends per share in only ten years. With its recent acquisition, the growth is sure to accelerate but Wall Street hasn’t valued this yet. The stock is still down from its pre-pandemic level, so you can grab this stock at a bargain price.   [CLICK HERE JOIN OUR LIVE TRADING & TRAINING SESSIONS](     © All Rights Reserved, Trade Alliance If you no longer want to receive these messages, you may [click here]( to unsubscribe.