No Value Pick this week.
The overall market responded well to the Fed meeting this week in Jackson Hole, WY and the likely prospects for a rate cut later in the year, based on Fed Chairman Jerome Powell. Combine that with bond prices going down (in general, when bonds go down, stocks go up, and vice-versa) and we can see why the S&P 500 went up 1.4% last week.
Our past picks did well, picking up 2.4% versus the S&P, for a weekly gain of 3.8%. This was led by Meritage Homes (MTH), our first pick back in April 2022, which leaped 14.6% during the week after reporting an 84% increase in Earnings Per Share from the same period a year ago. Considering the continued housing shortage and the likelihood of lower mortgage rates, it’s likely that this trend will continue for MTH.
Have a great week!
Chris
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