Is a Dividend Stock Comeback Around the Corner?
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In this week’s newsletter:
The clock is counting down to the Federal Reserve’s September meeting, and so far, the coast looks clear for interest rates to start coming down. The latest update was good news on the Fed’s preferred measure of inflation. The July Personal Consumption Expenditures Price Index posted a softer increase than expected. As Morningstar chief US economist Preston Caldwell explains, that should leave room for the Fed to cut rates. The question is: by how much?
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A rate cut will bring a big change for the bond market. Gabe Alpert checks in with three top bond fund managers on how they are positioning for the Fed’s next move.
Another big hurdle for the market was Nvidia’s earnings. The semiconductor behemoth has been responsible for a good chunk of the market’s overall gains, and it could have been a real problem if the company had fallen short of expectations. While they didn’t blow out forecasts, Nvidia still showed its strength. Check out Morningstar equity strategist Brian Colello’s take on Nvidia’s earnings.
Elsewhere in the stock market, the bumpy ride continues for many of the Magnificent Seven. Amazon is down 11% in the third quarter. But the good news for investors looking to put money to work is that Amazon’s stock is now looking cheap.
Speaking of cheap stocks, on the first business day of every week, be on the lookout for our roundup of newly undervalued stocks. This past week, Amazon joined the ranks of 4-star stocks. See the other two here.
While big-name tech stocks have been struggling, one household name isn’t. Warren Buffett’s Berkshire Hathaway has crossed the $1 trillion market cap line. Is the stock a buy? Morningstar strategist Greggory Warren offers his take.
Lastly, Sarah Hansen digs into the prospects for dividend stocks. They’ve been left in the dust by the big tech rally. Are dividend stocks’ fortunes about to change?
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