It has been really nice, and while the current rally may indeed still have more legs, there are some very dark clouds on the horizon for the second half of 2023. Profligate government spending has propped up the economy for the past two-plus years, and while the government can continue to print money, consumers cannot. Now with all the old largesse from handouts having long been spent, many Americans are ramping up credit card debt at a record pace — credit cards with interest rates as high as 20% and more.
What are investors who have been sold that artificial intelligence is the wave of the future (which is indeed highly likely) to do now? The best idea is to take profits and move to safer stocks for the second half of 2023. The 500 basis points of interest rate increases are going to show up all through the economy soon, and there is an excellent chance rates will be headed higher in the second half of the year. Plus, moving to safer stocks still keeps you in the game if stocks move higher.
We screened the Berkshire Hathaway portfolio looking for companies that pay dependable dividends, are rated Buy at top Wall Street firms and offer substantial upside potential over the next six months. Six top stock made the cut, and all make sense for growth and income investors looking to take profits and move to safe ground.
It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Ally Financial
The bank with no buildings may be poised to have a strong second half of 2023. Ally Financial Inc. (NYSE: ALLY) is a digital financial services company that provides various digital financial products and services to consumer, commercial and corporate customers primarily in the United States and Canada. It was formerly known as GMAC and changed its name in May 2010.
Its Automotive Finance Operations segment offers automotive financing services, including providing retail installment sales contracts, loans and operating leases, term loans to dealers, financing dealer floor plans and other lines of credit to dealers, warehouse lines to automotive retailers and fleet financing. It also provides financing services to companies and municipalities for the purchase or lease of vehicles and vehicle-remarketing services.
The Insurance Operations segment offers consumer finance protection and insurance products through the automotive dealer channel and commercial insurance products directly to dealers. This segment provides vehicle service and maintenance contracts and guaranteed asset protection products, and it underwrites commercial insurance coverages, which primarily insure dealers’ vehicle inventory.
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