Today’s the Fed Day

[CLICK HERE JOIN OUR LIVE TRADING & TRAINING SESSIONS]( Hello investor, Today’s the Fed Day Nothing is going to be more important to Wall Street than the Federal Reserve’s rate decision due later today. Fed funds futures pricing indicates a more than 99% probability that the central bank will leave rates unchanged. So, investors will pay attention to Fed Chair Jerome Powell’s commentary on the current state of its fight against inflation. - “If the Fed comes out and says they’re probably done for the year, gives hints that they’re feeling more dovish, that could be one thing that really helps,” said Ross Mayfield, investment strategy analyst at Baird. - “But I do think you need some downward pressure on rates to actually get a more sustainable move in stocks.” Ross Mayfield, investment strategy analyst at Baird (Photo: CNBC) Ross Mayfield may be correct that it could be positive for stocks if the Fed says it’s done with hiking rates. But will they say that? Very, very unlikely. The last thing that Fed officials want to do is to box themselves into a decision. What if inflation accelerates when they say they’re done with hiking rates? Reversing its stance will destroy the credibility of the central bank. So, Fed officials are likely to stay noncommittal and say that they’ll remain data dependent. Joe Davis at Vanguard believes that there could be “1-3 more hikes” to bring inflation down to its 2% target. - “Inflationary pressures and broader macro trends are heading in the right direction, but last week’s GDP report and a still strong labor market highlight the bumpy path the Fed faces on the road to their 2% target,” said Joe Davis, chief global economist at Vanguard. - “We believe 1-3 more hikes will be needed for them to confidently achieve their goal over the next few years.” Besides the Fed’s announcement, we’ve got two key catalysts coming up this week – Apple's earnings report and October’s jobs report. With the S&P 500 hovering close to its 200-day moving average, now is the delicate time in the market.  1 Growth Stock To Buy On A 93% Dip Today’s Stock Pick: Fiverr International Ltd. ([FVRR]() One of the best indicators of a monster stock is whether the company is the “category leader.” First-movers often have the advantage that is difficult to penetrate. For example, WeWork is the category leader in coworking spaces. Airbnb for home rentals. Uber for ridesharing. And so on. Fiverr is the category leader in a new (and huge) market of freelancing. The estimated TAM is a whopping $247 billion. What makes Fiverr unique is its e-commerce approach to the services industry. (Source: Fiverr) You could order products from Amazon with a listed price. Simple and sweet. But what if you want to order a brand logo? In the past, you will need to post a job, interview candidates, and go through all of that headaches. With Fiverr, you can simply purchase a service with a listed price. Imagine if you need to plan a travel. Rather than spending time on researching for your travel itinerary, you can simply purchase a service from a travel agent on Fiverr with wide-ranging price points: (Source: Fiverr.com) Cool, right? Like when e-commerce was in its infancy back in the late 1990s, the market of freelancing is very outdated. In the graph below, you will see how most of the freelancing happens offline – rather than online. You and I know that it’s inevitable for freelancing to go online due to the explosion of hybrid work models. Companies are more comfortable working with people online, and it can only boost the demand for online freelancing. (Source: Fiverr) Network effect: One of the most powerful competitive moats is the network effect. Its value increases as more people join the platform. And it would create a flywheel. If Fiverr sellers see more opportunities on the platform, more freelancers (especially higher quality ones) will join the platform. If the buyers see the immense value of sellers, more buyers will also join the platform. This leads to more demand for services. It would eventually attract more sellers. And the flywheel continues. (Source: Fiverr) Phenomenal revenue growth: Sure enough, Fiverr is growing rapidly. Its revenue grew at an incredible pace of 47% CAGR from 2019 to 2022. During the recent earnings call, Fiverr executives acknowledged the new demand from investors to focus on profitability. (Source: Fiverr) Fiverr’s stock fell by 93% since its recent all-time high! Fiverr CEO pointed out that freelance demand usually gets hit first before full-time hiring. He believes that it often leads broader GDP trends, which means the freelancing market can be a “leading indicator” of the economy. However, freelance demand is also expected to be the first to recover. With the stock being down by 93%, it could recover rapidly as soon as Wall Street turns optimistic again. Bottom line: Fiverr is a rare category leader that is still young. Its market cap is just $813 million, but its revenue is growing at a 47% CAGR in the last four years. The growth would slow down a little bit next year due to an economic slowdown. At the same time, this may be already reflected in its stock price as it’s down by 90% from its all-time high. Buy Fiverr if you are looking to buy low on a huge share price dip because of its immense future in the freelancing market.   [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.