Today was a fun hit - puns were everywhere.
We disconnected from ATT as a mild slowdown to recession isn't going to help new subscriber growth - but more importantly new phone sales could slow as people hold off on big purchases. Plus, the whole reason many hold this stock is for the juicy dividend. Today it's not much more than a short term treasury - and the dividend isn't protected.
Don't leave home without it. American Express had a so-so quarter, telling us what we know, defaults are coming, and more bullish talk of 15% revenue growth. I simply said it's the only stock I like in that group. Why? Wealthier consumers don't slow down as much when times are tough. And their focus on getting young people wrapped up into expensive status credit cards is smart. Really, does a business owner want to give up their Platinum card? Time will tell.
As for homebuilders - I reminded everyone I said they were a speculative buy last year - but that was more about expectations the Fed would pause by now. What really made this stock perform well recently is simply the lack of housing supply. 30% of homes for sale are new construction. However, when stocks jump like this, with continued high mortgage rates, one might consider taking some profits off the table and right sizing the position.