Labor Strength → Higher Rates → Lower Valuations → Short This Stock! — Don’s Daily Brief

by | Jan 5, 2023

The ADP Employment Report came out this morning and showed continued strength in the labor market.

Depending on where you look, you see weakness, you see strength. It’s very confusing with a lot of contradictory signals. Exactly what you’d expect in a chaotic environment that we find ourselves in.

But what that does is it signals to the Fed that they need to keep going with their campaign to hike rates.

As rates go higher, valuations will go lower and that affects finance companies & investment companies. Companies like Blackstone.

As valuations down, their management fees will go down and that will affect their business model.

Blackstone popped up on my Opportunity Zone Scanner today. It’s in the Opportunity Zone, which means it could be heading lower.

And as I look at the Volume Profile, I’m seeing that it’s set to go quite a bit lower. Enough to double your investment if you pick the right option.

► So for today’s free pick, I’m recommending that you short BX.

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Every market day, Don Yocham scans thousands of potential stocks, whittling down the list to just a handful that could be setting up to make BIG moves.

The top idea from his daily scan ends up here.

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WRITTEN BY<br>Ileana Wolfort

Ileana Wolfort

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