Recession or no recession?

Earn While You Learn! ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!]( Hello investor, Recession or no recession? We’ve got a battle! Buyers swooped in to spark a recovery in stocks after last week’s sell-off. Can it last? Maybe, maybe not. The next key catalyst will be this week’s inflation data. Wall Street is confident that the inflation fight is almost over, so traders shouldn’t expect much volatility from the report. - “We’re seeing mostly technical dip-buying,” said Tom Essaye at The Sevens Report. - “Economic growth is undoubtedly and clearly losing momentum, but a soft landing remains more likely than a hard landing. This week focus turns back to inflation.” Tom Essaye at The Sevens Report (Photo: Yahoo Finance) Indeed, Wall Street is trying to decide if we are going to see a soft landing or a hard landing. The first scenario would be positive for stocks since the Fed’s interest rate cuts are poised to stimulate more economic activity. Otherwise, a hard landing scenario is a recession that could depress corporate earnings. Many analysts remain convinced that the long-term rally is alive and well. The recovery from August’s plunge reinforced this sentiment. - “Looking at popular averages through a technical analysis lens suggests last week’s weakness was just a pullback within the context of a longer-term uptrend,” said Craig Johnson at Piper Sandler. Things can change quickly, of course. The market follows the economy. If earnings remain robust, it is usually positive for stocks. So, traders should expect the next few economic readings to dictate the sentiment on Wall Street. Avoiding a recession will be key. Based on history, the S&P 500 gained 17% on average in the 12 months following the first Fed rate cut of a cycle, said Mark Haefele at UBS Global Wealth Management. So, it really falls on whether the economy can avoid a recession or not. A Safe Stock to Own Right Now Today’s Stock Pick: First Interstate Bancsystem Inc (FIBK) Ben Graham, the author of Intelligent Investor, lost almost all his investments during the market crash in 1929. It was the best thing that happened to him. It kicked off his search for a safer investment approach. The primary goal is preserving your principal. It is the same with the story of The Tortoise and the Hare. The hare gets distracted by shiny objects and keeps stopping. The tortoise keeps on going, little by little. That’s defending your principal. Dave Ramsey, a financial expert, wrote in his book called “Complete Guide to Money” about his interview with a billionaire. He asked the billionaire what his secret was to building wealth. The answer was simple: - “Dave, we live in a world full of hares. Everyone’s racing around doing all kinds of crazy stuff. They’re running ahead and falling back, running ahead and falling back. They’re going back and forth, side to side, and all in circles. But the tortoise just keeps moving forward, slow and steady. And you know what? Every time I read the book, the tortoise wins.” Dave Ramsey (Photo: Dave Ramsey) So, Ben Graham understood that book value serves as a floor to your returns. The reason is simple. If a company goes out of business, it will liquidate its assets and pays off debts. What’s left is what you get as an owner. That’s cold, hard cash. And it is your floor because if a company is worth $1 after the liquidation, then you’ll get $1. So, Ben loved to find stocks that are trading close to or below the book value. The risk is limited. And the chance of the market correcting its valuation is high. Today’s stock pick offers you a low-risk pick with high appreciation potential. First Interstate BancSystem operates in the sleepy town of Billings, Montana. And it is a huge opportunity to buy low on the bank. The pandemic led to an outflow to Pacific Northwest states – such as Washington, Oregon, Idaho, Montana, Wyoming and South Dakota. These are also the states that First Interstate operates in. Naturally, these new residents will need to put their money somewhere. FIBK stands to benefit from it through deposits and loan growth. Trading close to book value: Despite the tremendous growth potential, FIBK is trading close to its book value per share of $30. What is its current share price? About $29. That’s below its book value. Listen, it is normal for banks to trade above their book value. JPMorgan Chase’s stock price is usually above its book value. FIBK is a wonderful stock because its book value is your floor. Yes, it is below the book value right now but will act close to the lowest possible for the stock to go. Why? Of course, book value measures the liquidation value of a business. What’s more, your potential gain can be large thanks to its loan growth. As a bonus, your dividend yield would be 6.40%! Bottom line: First Interstate BancSystem is trading below its book value due to the concerns surrounding regional banks. The stock may be as low as it can go, and you’d earn about 6% in dividends yield. Its future growth is promising with the growth in the Northwest region. All in all, FIBK is a safe stock that offers you a high dividend yield which is perfect in the current market.   [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!](     © All Rights Reserved, Trade Alliance [Unsubscribe]( | [Manage Preferences](