Interest Rates Take Down Stocks… Grab Shares in the Only Industry Defying Its Reign
Shah Gilani|January 11, 2022
Over the weekend, I gave you a close look at what to expect out of 2022’s top five money-movers:
- Inflation…
- Biden’s regulation army…
- A crypto-crash…
- China’s impending “Lehman-moment” …
- And the perseverance of the retail trader.
(If you missed it, you can read my analysis of 2022 by clicking here and here.)
Today, you’ll be applying that analysis with our first foray into a 2022 loaded with profits. Interest rates are climbing through the roof, hurting any American industries – except one, and I’m giving you the best way to play that industry’s gains in today’s video.
Click below to watch or access the video’s transcript.
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Transcript:
Hey, everybody. Shah Gilani coming to you today from beautiful Aspen, Colorado – where I’m about to hit the slopes…
But not before I give you your “take-it-to-the-bank Tuesday” recommendation.
Today, we’re gonna play on the major theme – higher interest rates. We’re seeing an increase in profit taking because of it, which will create discrepancies in terms of valuations… especially for growth stocks… especially for Big Tech.
That’s why we’re seeing the selling off there… and elsewhere.
But that doesn’t mean all sectors are gonna get hit. Some do really well in a rising-interest-rate environment, including my favorite financial subsector: banks.
Love the banks.
If you take a look at the numbers…
- Wells Fargo – hitting new highs again…
- Bank of America – hitting new highs…
- JPMorgan – getting close to its highs…
- And my favorite right now – the one I want you to buy today for your $100: Citi Group.
Yeah, Citigroup Inc. (NYSE: C).
It’s been laggard… And that’s why I like it. As everyone is looking to financials – as they’re looking to banks to play rising interest rates – the others are going higher and higher and higher. Which is great.
But if you’re not in them yet, you’re gonna pay peak price for them. Nothing wrong with that – they’re probably going to go a good bit higher.
But Citi, I think you can get at a really good price right now. Citi’s trading around $65.60. Its high back in June was about $80 and I think $0.29 – thereabouts. So, it’s down about 18% from its highs – just in June.
I think it’s gonna make that up and we’ll see new highs. At least a 22% gain.
The other thing I love about Citi is: It pays you a 3.10% dividend yield… Meaning, if you buy in, you’ll be getting paid to hold Citi. Any time I get paid to hold a stock that I expect to appreciate by at least 20%, that’s an all-day kind of trade for me.
And I’m not saying that 20% is the upside limit on Citi. I think Citi could go a lot higher.
It’s been a laggard. That makes it look awful attractive right now for everybody getting into the banks to play rising interest rates.
So Citi for your $100 is the place to go today. Take it to the bank.
Cheers, y’all.
Thanks for watching.
Shah
Shah Gilani
Shah Gilani is the Chief Investment Strategist of Manward Press. Shah is a sought-after market commentator… a former hedge fund manager… and a veteran of the Chicago Board of Options Exchange. He ran the futures and options division at the largest retail bank in Britain… and called the implosion of U.S. financial markets (AND the mega bull run that followed). Now at the helm of Manward, Shah is focused tightly on one goal: To do his part to make subscribers wealthier, happier and more free.