Welcome to Extreme Investor Network, where we provide you with exclusive insights and analysis to help you make informed investment decisions. Today, we are recapping key discussions from CNBC’s “Worldwide Exchange” for our PRO subscribers.
Investors are closely monitoring the trend in small caps and value stocks following the Federal Reserve rate cut last week. Stephanie Link of Hightower expressed confidence in the market, noting that the Fed is working towards a soft landing and anticipating better-than-expected corporate earnings. While volatility may persist leading up to the elections, Link sees any weakness as a buying opportunity due to stronger-than-expected economic growth.
Reanne Mitrione of the Callan Family Office highlighted the outperformance of small cap and growth stocks, attributing it to the recent decline in interest rates. With more debt on balance sheets and a significant portion at floating rates, small caps are positioned to benefit the most from the current economic environment.
For our Worldwide Exchange pick, we are looking at Exxon (XOM), which is currently trading at an attractive entry point at 14-times forward earnings. Link believes the stock is significantly undervalued compared to its historical average of 20-times earnings. With a recent acquisition and ambitious growth targets, Exxon is poised for above-average growth in the coming years. Keep an eye on the upcoming analyst meeting on December 11 and new project developments next year as potential catalysts for the stock.
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