Here’s what’s actually going on in the markets.

Original Reddit post

Author argues that Warsh's nomination to end QE will pull liquidity and boost the dollar, favoring dividend-paying free-cash-flow stocks over those needing capital.

KHC — LONG The author argues that Trump's nomination of Warsh, who wants to end quantitative easing, will pull liquidity from markets and increase demand for dollars. In this environment, investors should own companies that generate substantial free cash flow and return it via dividends, such as Kraft, Conagra, and Flowers Foods, while selling companies that require dollars to operate. The main risk is that the Fed policy shift may not occur as expected or dividend stocks may not outperform.

When this happens you want to own stocks that produce tons of free cash and give it to you as dividends. Think Kraft, Conagra, Flowers Foods, etc. and sell the companies that need dollars to operate rather than being able to give it to the investors.

CAG — LONG The author argues that Trump's nomination of Warsh, who wants to end quantitative easing, will pull liquidity from markets and increase demand for dollars. In this environment, investors should own companies that generate substantial free cash flow and return it via dividends, such as Kraft, Conagra, and Flowers Foods, while selling companies that require dollars to operate. The main risk is that the Fed policy shift may not occur as expected or dividend stocks may not outperform.

When this happens you want to own stocks that produce tons of free cash and give it to you as dividends. Think Kraft, Conagra, Flowers Foods, etc. and sell the companies that need dollars to operate rather than being able to give it to the investors.

FLO — LONG The author argues that Trump's nomination of Warsh, who wants to end quantitative easing, will pull liquidity from markets and increase demand for dollars. In this environment, investors should own companies that generate substantial free cash flow and return it via dividends, such as Kraft, Conagra, and Flowers Foods, while selling companies that require dollars to operate. The main risk is that the Fed policy shift may not occur as expected or dividend stocks may not outperform.

When this happens you want to own stocks that produce tons of free cash and give it to you as dividends. Think Kraft, Conagra, Flowers Foods, etc. and sell the companies that need dollars to operate rather than being able to give it to the investors.