Powell to Wall Street: No Rate Cut in March

Join TradeAlgo's Free Live Trading Session ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!]( Hello investor, Powell to Wall Street: No Rate Cut in March (Photo: 60 Minutes) But to be clear, Powell doesn’t think inflation will reaccelerate. He just views it as a “prudent” thing to be conservative before cutting rates. The economy simply performs too well to cut rates, so the central bank is likely to remain “wait and see” mode until it slows down signfiicantly. - “We don’t think that’s the case,” he said. “But the prudent thing to do is to, is to just give it some time and see that the data continue to confirm that inflation is moving down to 2% in a sustainable way.” Powell suggested that the first rate cut could happen around the middle of the year. - “All but a couple of our participants do believe it will be appropriate to, for us to begin to dial back the restrictive stance by cutting rates this year,” Powell said. “And so, it is certainly the base case that, that we will do that. We’re just trying to pick the right time, given the overall context.” As a result, the 10-year Treasury yield climbed around six basis points in early Asian trading after the Powell’s interview was aired. Why? Of course, Wall Street needs to adjust to higher yields to factor in the “higher for longer” stance. Moreover, the odds of a rate cut in March plummeted from almost 40% on Thursday to 20%. As for this week’s key economic data, we will get initial jobless claims on Thursday. It is the only key economic data, while the earnings season will continue with hundreds of companies reporting results throughout the week. Top Undervalued Hotel Stock To Buy Right Now Today’s Stock Pick: Playa Hotels & Resorts NV ([PLYA]( Playa Hotels & Resorts is the owner, operator, manager and developer of all-inclusive resorts in prime beachfront locations – Pacific Coast, Cancun, Jamaica, and Dominican Republic. (Source: Playa Hotels & Resorts) Here’s the secret sauce behind Playa’s business. It partners with elite brands like Hyatt, Marriott, and Hilton to offer all-inclusive resorts. Its competitors don’t work with as prestigious brands as Playa does, giving them limited U.S. consumer recognition. (Source: Playa Hotels & Resorts) Offering all-inclusive makes a lot of sense for a business. Guests book and pay further in advance, offering more predictable revenue streams. Because its services are in one package, the hotel can prepare its resources better (in labor, etc.). If you offer fee-based hotels, you will have difficult time to anticipate demand. (Source: Playa Hotels & Resorts) Best of all, all-inclusive often offers best deals for consumers. They pay less in total if they consider all extra expenses they’ll have to pay if they stayed at a regular hotel. (Such as food, entertainment, etc.) For example, Playa estimates a 36% savings if consumers paid for an all-inclusive hotel. (Source: Playa Hotels & Resorts) Therefore, Playa can make a lot of money by buying a non-branded property and convert them into a branded one. Often, it brings an instant boost to demand and rates. Its Hyatt Ziva Cancun property brought a 35% Cash-on-Cash return since its opening date of 4th quarter in 2015. (Source: Playa Hotels & Resorts) And it wasn’t an unicorn project. Playa averaged about 34% cash on cash return from its conversion and expansion projects! (Source: Playa Hotels & Resorts) As a result, Playa is a money-making machine. It has the highest 4-year historical average for LTM adjusted EBITDA margins. It is a company that knows how to make money off its properties. (Source: Playa Hotels & Resorts) Bottom line: Playa Hotels & Resorts has a secret sauce to find undervalued properties and turn them into a cash cow. That’s the best kind of a business. And they hold an enormous competitive advantage in working with elite brands. You can simply buy this stock for its undervalued properties, and be confident that your money will be protected with a great upside. [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!](       © All Rights Reserved, Trade Alliance [Unsubscribe]( | [Manage Preferences](