Our bull thesis on our furniture stocks is playing out exactly as we predicted.͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
| |  | | March 28, 2024 | | Alert Action to Take: Sell 1/3 position in both W and RH stock. Dear Leah, In late 2023 and early 2024, we placed bullish trades on a few retail stocks based on the thesis that consumer spending would strengthen in 2024, and discounted retail stocks — such as those in décor and furniture — would surge.
These trades have mostly worked out wonderfully for us.
Our trades in the furniture retail sector, Wayfair (W) and RH (RH), have been particularly successful. We recommended these stocks because they were particularly exposed to interest rate trends. As rate cuts come into play, our thinking was that both stocks would benefit immensely in 2024.
This seems to be exactly what’s happening. RH reported earnings yesterday, with management indicating that demand and profit trends would improve meaningfully this year. As a result, RH stock is soaring, and Wayfair is catching a nice bid, too.
We believe both stocks have further upside potential as rate cuts boost furniture spending later this year.
However, we recognize that the massive valuation discounts that initially attracted us to these stocks no longer exist.
Therefore, we recommend taking some profits from our furniture segment.
Let us sell one-third of our RH position for approximately 25% profits and one-third of our W position for approximately 20% profits.
Congratulations on the successful trades! Let’s continue to ride the strong retail trend to big profits.
We’ll be in touch later today with the “Daily Notes.” Read the Full Alert |  | | Luke Lango
Editor, Innovation Investor P.S. The furniture industry isn’t the only trend we’re bullish on right now. As artificial intelligence continues to heat up, there’s one hidden subsector that’s poised for a major shakeup. In fact, the federal government just triggered what I believe could be the #1 A.I. trade for the 2024 election year. And last night, I delivered my investment breakdown on this historic situation. If you missed it, there’s still time to learn about this new AI boom and get in on six trades that could soar 6,000%. Learn more . New to Innovation Investor? Click here to access Innovation Investor’s Special Report archive.
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