Value Stock Spotlight 8.0
A familiar thesis.
We're going to make this one quick and easy.
Usually with our value spotlights we like to add in broad market commentary to give readers an insight into our thought process and thesis behind why we are choosing a certain sector and company.
But we feel as if our stance is sufficiently explained to readers.
(For more thesis information, just refer to our previous, longer, pieces, our stance remains unchanged.)
TLDR:
We are not in the recession camp.
We are not in the AI chase camp.
We believe that rate cuts are coming soon and this will spur an extended rally in both small caps and value names, stocks that have "missed out" on this lopsided tech run.
Simple.
Rotate into stocks that will benefit from rate cuts and are trading at dirt cheap valuations off the back of recession fears, ones that we don't expect to materialize any time soon.
What better sector to fit those criteria than housing?
Here's our play...
