The Fed is now expected to hike rates to 5.5% or even 5.75%, effectively 7.5% to 7.75%, including QT.
The bond market is convinced a recession is coming in late 2023 or early 2024. Stocks are likely to fall 10% to 15% from here.
But the world’s best cloud computing titans, Microsoft Corporation and Amazon.com, Inc., are good for table-pounding buys today!
Amazon is 55% historically undervalued and has the potential for 7.5x returns in the next six years and could more than triple by 2025.
Microsoft is 5% undervalued and offers a 120% upside over the next six years and 14% long-term returns.
At its Ultra Value price of $174 (35% discount), its six-year return potential rises to 200%.
However, the lowest-risk U.S. company is unlikely to fall 31% and trade at 10X cash-adjusted earnings.
If you don’t buy some AMZN and MSFT today, you’ll likely regret it in a few years.
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