| Interest rates are going up, and the Federal Reserve has made clear that we shouldn’t expect anything different in the coming months. That's changing the way we think about dividends. You see, the Fed has a dual mandate to maintain full employment and to maintain price stability. It’s found success on the first part, given that we have a bona fide labor shortage across most of the economy. But it’s failing on the second part, considering inflation hasn’t been this high in four decades. It’s safe to bet that the Fed will err on the side of hawkishness (i.e., more aggressive action) until something fundamentally changes. In other words, expect the Fed to raise rates for a while. In a high inflation and rising rate environment like this, it pays to focus on dividend growth over dividend yield. I like yield, of course. Who doesn’t like a fat dividend payment hitting their account each quarter? But if your mission is to stay ahead of inflation and rising rates, dividend growth is the priority. And today’s real estate investment trust (REIT) is a growth dynamo you can’t ignore. Suggested Stories: These 7% REITs Are the Perfect Hedge We Want It Now! Top Transportation Stock Delivers Goods AND Profits
| Wall Street legend says America 2.0 stocks will lead the charge to a huge rebound, leaving the blue-chip stocks to fade out. But hurry, as it will happen fast. | |
Chart of the Day
Pessimists say President Biden’s budget proposal could sink the stock market. Realists understand that final budgets won’t include every idea floated. A proposed billionaire tax and an increase in the corporate tax rate are capturing headlines. These measures would affect stocks. Billionaires would pay taxes on unrealized capital gains and could be forced to sell winning stocks to fund the tax, and higher corporate taxes would reduce earnings. These factors could slow — but not collapse — the bull market. Another idea in the budget could lead to a bear market and a slow recovery. Namely, the proposal to prevent corporate executives from selling shares for three years after a stock buyback. Companies are buying back stock at a record pace. (See the chart below.) Let’s see how Biden’s proposal would change that.  Suggested Stories: Market Pendulum Swings Back to Growth Stocks — Follow the Trend Inflation Expectations Get Ugly
| Only 2% of cars sold in the U.S. today are electric vehicles … but that's about to change — FAST. A new battery breakthrough is ready to hit the market. It could revolutionize the $2 trillion automotive industry … and could soon make gas guzzlers obsolete. This technology is predicted to cause a 1,500% surge in electric vehicle sales over the next four years. The company pioneering this new battery could be the investment of a lifetime. | |
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1981: The stock market closed after news broke of an assassination attempt on President Reagan. | |
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