More Stocks That Will Love a Rate Cut

Aug. 2, 2024

In our last Newsletter, we looked at a stock that should thrive if the Fed lowers rates in September.

(The likelihood of the Fed doing this is nearly 100%, according to the latest estimates.)

Not surprisingly, that stock was real estate-based, and the name was Realty Income (O).

O has beaten the market over a long period of time, pays a monthly dividend, and is currently “on sale”. Here’s the comparison to SPY:

Staying with that simple theme, there’s another real estate stock that might do very well.

This one is VICI Properties (VICI). This REIT destroyed the market from 2018 through July 2023:

But then rates started rising and VICI started suffering. Is it a good time to buy?

I would say so. It’s surged lately on September rate cut hopes, but it’s sitting right near “fair value”:

Buying a market-beating stock at a fair price that might thrive if the Fed drops rates might be a good opportunity.

And here’s one more real estate stock that might surprise you.

McDonald’s (MCD).

Wait, what?

It’s true.

While famous for its Filet-O-Fish sandwiches, MCD is actually a real estate conglomerate. It makes a lot of its money being a landlord to its thousands of franchises.

And this makes MCD another possible real estate/rate cut play.

Does MCD beat the market?

Yes, by a country mile.

Is MCD “on sale”?

Yes, it’s slightly below “fair value”.

Will it like lower rates? Almost certainly.

So there are a few ideas that might surge if rates are cut.

Talk to you soon.

Join the free Newsletter list here .

Get Robot information HERE.
Visit my Performance Page HERE.
Buy my new book HERE.
The Inevitability of Becoming Rich is HERE.
My latest YouTube video is HERE.

Disclaimer:
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples presented on these sites are for educational purposes only. These set-ups are not solicitations of any order to buy or sell. The authors, the publisher, and all affiliates assume no responsibility for your trading results. There is a high degree of risk in trading.

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.