Inflation is when things cost more money than they used to. When inflation goes down, it means things don't cost as much as before. The stock market is a place where people buy and sell parts of companies, called stocks or shares. When the inflation goes down, some stocks become more valuable because people think those companies will do better with lower costs.
In this article, they talk about two companies that might do well if inflation goes down: D.R. Horton (DHI) and Amazon.com (AMZN). D.R. Horton is a company that builds houses, and Amazon.com sells lots of different things online. If it costs less to build houses or ship things online, these companies can make more money and their stocks will be worth more in the stock market.
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1. The article does not provide any evidence or data to support the claim that inflation was cooling and that the Fed wouldn't raise interest rates beyond 5.25%-5.5%. This is an unsubstantiated opinion that lacks credibility and objectivity.
1. DHI - Buy with a target price of $85 and a stop loss of $70. DHI is a leading homebuilder that benefits from lower inflation as it reduces the cost of materials and labor, increases affordability for potential buyers, and boosts demand for new homes. DHI has a strong balance sheet, positive cash flow, and a history of profitability. However, there are some risks such as rising interest rates, increased competition, and regulatory changes that could impact the industry.
2. AMZN - Buy with a target price of $180 and a stop loss of $145. AMZN is a dominant e-commerce platform that benefits from lower inflation as it reduces the cost of shipping and logistics, increases consumer spending on discretionary items, and expands its market share. AMZN has a robust business model, diverse revenue streams, and significant growth potential. However, there are some risks such as rising labor costs, regulatory scrutiny, and intense competition from other tech giants that could impact the company.