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URGENT PRICE UPDATE: Wall Street Projects $30 Stock to Move to $280 in 18 Months.

Consensus Target Price

The spiraling European energy crisis has a silver lining... Wall Street says it could drive one stock from $30 to $280 in just 18 months. Find out why right here.

A Great Company With an Interest Rate Tailwind

Jody Chudley, Contributing Analyst, The Oxford Club

Jody Chudley

Skyrocketing interest rates have become a major headwind for consumers, corporations and the stock market.

But not for the financial services firm that we're evaluating today, which is a major beneficiary of rising rates.

Yet, despite the company seeing rising rates drive earnings higher, its share price is down this year! Because a bear market takes no prisoners...

This company provides online brokerage services for retail customers and works with registered investment advisors through its institutional services platform.

It has grown to become a very big business. In total, it now manages an astounding $6.6 trillion worth of assets.

But the company's business model is highly sensitive to interest rates.

It makes money much like a bank. It pays customers a modest amount for cash they have on deposit. Then it earns a profit by reinvesting that cash at higher rates.

While a bank mainly reinvests that cash by lending it out as mortgages and other loans, this company simply invests it into risk-free Treasurys.

The zero interest rate policy of the Federal Reserve in recent years has been a big drag on this company's earnings. It hasn't been able to earn a decent profit margin reinvesting customers' cash.

Now, this year has been a different story. The return that it can earn by holding Treasurys has gone up exponentially.

Let's look at the U.S. five-year Treasury bond, for example, which started this year paying 1.25%.

It now offers 4.36%. As I said, an exponential increase!

Chart: 5-Year Yield on U.S. Treasury Securities

The company's financials reflect this improvement.

And that's why its stock is undervalued.



The single best place to put your money right now (not gold)

If you'd tapped into this "account" during one of the worst times to invest in history... You could have set yourself up for 796% gains and trounced the S&P 500 in the process.

Today, investors are flocking to this "account" again, as the market continues to fall.

It's the perfect time to tap into this opportunity. Check out our full briefing right here.

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Recession? Depression? You Haven't Seen Anything Yet!

Bad news... the worst of this mess could still be to come.

That's because I expect horrific news to erupt from a secretive closed-door meeting on December 14.

What comes out of it could shake the very economic foundation of this nation.

If you think the "Nixon Gold Shock" was bad... you've got to see this.

Click here for a video that will scare you into action.

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