RJ Hamster
Signs of Life in One Corner of the Real…
 Delivering World-Class Financial Research Since 1999 The spotlight is on the Federal Reserve again… We could see more volatility ahead… Housing check-in… ‘Delistings’ are soaring… This corner of the real estate market is setting up an opportunity… Mailbag: The trouble with PBMs… It’s another Fed week…All eyes and ears will be on Federal Reserve Chair Jerome Powell this Wednesday, when he steps up to the podium for a press conference following the central bank’s two-day policy meeting.After some market uncertainty early last month, the Fed is now widely expected to announce a 25-basis-point rate cut – its third in the second half of 2025.The market would likely react with surprise and volatility if the Fed doesn’tlower rates again, given recent signals from “dovish” Fed officials. Fed-funds futures traders have 89% odds on the Fed lowering rates.However, Powell left the door open for the possibility of a rate-cut pause with his “no comment” on monetary policy during a speaking appearance last week. We also heard from several “hawkish” Fed officials last month following a late October meeting with “strongly differing views” voiced.With the labor market continuing to weaken, we see many other signals of stress in the “real” economy… And there are signs that the pace of inflation is picking up again.It’s a “stagflationary” environment with no easy solutions for simultaneous growth and “affordability” (which seems to be the latest buzzword for inflation). But Mr. Market doesn’t necessarily care about that right now. Based on current expectations, lower rates will be welcomed in the short term.However, there’s another reason we could see some volatility later this week. If the Fed does cut rates, the mainstream financial media will assuredly focus on “what’s next?”During this month’s Fed meeting, its members will predict GDP, inflation, and interest rate policy for the year(s) ahead.With concerns about the pace of inflation (still closer to 3% than the Fed’s supposed 2% goal), it’s possible the Fed will signal a possible rate-cut pause ahead, at least until Powell steps down in May. So even if we see a rate cut, be prepared for some potential volatility ahead.In the meantime, another sign of a slowdown…The residential real estate market remains stuck in neutral.Despite the Fed lowering interest rates twice since August and mortgage rates coming down compared with 2024, the average 30-year mortgage rate still remains above 6%… And financing costs haven’t been low enough to unlock homebuying and selling activity.Now, even housing that is going on the market is coming off at an increased rate.According to Realtor.com‘s November 2025 housing trends report, delistings in the U.S. were up 45% year over year, up from an almost 38% year over year rise in October… Home sellers simply aren’t finding willing buyers with current prices and financing costs.As we’ve written before, housing supply and demographics play major roles in the residential real estate market, but affordability is also a driving factor in this dynamic. And today, sellers are increasingly more willing to take their properties off the market entirely than cut prices to find a willing buyer – and generate less capital from a sale. From Realtor.com…”The delisting trend is a perfect personification of the stagnant and frustration-filled housing market,” says Realtor.com senior economist Jake Krimmel. “With buyers and sellers far apart, the sellers’ solution is to pull that trump card and delist, rather than cut prices.”In an ironic twist, Krimmel notes, this “emergency exit” for sellers actually keeps the market stuck in a rut by shrinking the inventory, putting upward pressure on prices, and in the process sending both buyers and sellers back to square one.Delistings began surging over the summer, with the Miami market topping the list of delistings relative to new listings in each of the past five months. Denver and Houston came in second and third in November.Meanwhile, Realtor.com‘s report showed that a handful of smaller metropolitan areas like Grand Rapids, Michigan, St. Louis, and Cleveland – which it describes as “refuge markets” for their affordability – have seen some of this year’s best price gains.Realtor.com‘s report discussed people moving from higher-priced markets to these smaller markets because it’s where people can find the most affordable housing. Our director of research, Matt Weinschenk, touched on this subject in his latest This Week on Wall Street report on Friday…When it comes to housing prices, well… it’s insane out there.My colleague Josh Baylin recently asked a successful longtime mortgage broker how young people are getting into the housing market.The two were playing a round of golf on the championship La Costa golf course in beautiful – and expensive – Carlsbad, California. For dozens of miles around, starter homes cost more than $1 million.The mortgage broker’s answer was simple: “They’re moving.””What 35-year-old, starting a family, has saved up $300,000 for a down payment on a home?” he added.That’s an extreme example, of course. (And California is widely known for having the highest housing costs.) But it’s the same story all across the U.S.In short, activity in residential real estate is largely frozen. But you might have better results looking elsewhere in the sector.It’s not all bad news…In This Week on Wall Street, Matt takes on one of the biggest questions facing Americans today: Can anyone afford a house anymore?… and offers another way to think about, and invest in, real estate as prices continue to rise…Instead of talking about flipping houses or becoming a landlord, Matt walks through a simpler way to benefit from today’s environment: investing in real estate investment trusts (“REITs”) right from your brokerage or retirement account.This corner of the real estate market is finally showing signs of life, and, for those paying attention, it’s setting up a huge opportunity.Matt is joined by Wide Moat Research’s Brad Thomas, a 30-year-plus real estate veteran and former real estate developer, for a discussion about the massive opportunities in REITs right now.Brad explains exactly what REITs are and how they work… why they might be ready to rally… shares his favorite sector within the sector… and three of his favorite investments right now.You can hear more details from Matt and check out his entire conversation with Brad for free right here on Stansberry Research’s YouTube page… and you’ll hear more information about one additional big real estate deal that Brad has his eyes on today.Recommended Links:AIRING NOW: This Stock Could Double Your Money IN A SINGLE DAY Before 2026Professor Joel Litman just stepped forward with the most urgent recommendation he has made all year. It all centers around a single stock you can buy immediately, which he believes could double your money – IN A SINGLE DAY – before the end of the year… no matter what else happens to the stock market this month. But you don’t have much time to make your move. Get the full story here.Executive Order 14318: The Most Important Document You’ve Never ReadThe mainstream media just missed the biggest financial story of the year… President Donald Trump signed an executive order to start unlocking an estimated $5.1 trillion in federal assets for the benefit of every American citizen. Most Americans have no idea this opportunity exists… But according to a former Trump adviser, it could trigger a historic “gold rush” for the American people. SEE WHAT THE MEDIA MISSED.New 52-week highs (as of 12/5/25): Alpha Architect 1-3 Month Box Fund (BOXX), Coca-Cola Consolidated (COKE), Pacer U.S. Cash Cows 100 Fund (COWZ), EnerSys (ENS), Expeditors International of Washington (EXPD), Fanuc (FANUY), Freehold Royalties (FRHLF), Lumentum (LITE), Mueller Industries (MLI), VanEck Morningstar Wide Moat Fund (MOAT), Robo Global Robotics and Automation Index Fund (ROBO), SandRidge Energy (SD), and Skeena Resources (SKE).In today’s mailbag, thoughts about pharmacy benefit managers (“PBMs”), stemming from subscriber S.R.’s report last week about their small pharmacy’s challenges… Plus, we have feedback on Dan Ferris’ Friday essay, and an astute observation… Do you have a comment or question? As always, e-mail us at feedback@stansberryresearch.com .“I read that S.R. may not make it through the year in their pharmacy. I once owned 67 pharmacies outright and 20 more with partners and I can tell you with 100% assurance [they are] suffering not because of pullbacks but because the reimbursements [they] receive from [their] PBMs is well below what [they] need to survive.”I sold all but one store near my hometown because of this.”More than half of all brand name drugs are reimbursed at LESS than cost and the average cost is well over $300. You can’t make money when your highest dollar transactions are at a negative margin. PBMs are real issue to high health care costs. They make all the money and provide no value-added service.”The brand manufacturers are extorted to pay the PBM’s big fees when their drugs are dispensed. If they don’t pay, they are not covered. The pharmacy fills the script for nothing or next to nothing. Until PBMs are regulated, thousands of independent drug stores will close right along with the thousands of store closures from the big chains.” – Subscriber Bruce G.“Tim L. commented [in Friday’s mail] that ‘I feel deeply for S.R. My father owned a small pharmacy in Indiana. He was very successful and very fortunate to sell the business and retire before the large pharmacies invaded the market.'”It is not the fault of large pharmacies that small businesses are being squeezed. The true blame lies primarily with the PBMs. They ‘negotiate’ the contracts that dictate reimbursement rates that are so low that pharmacies lose money on some transactions. In the process, they retain much of the money they claim to ‘save’ the insurance (and ultimately, the insured) companies. The primary reasons large pharmacies can survive are:They offer less professional service (less time to talk to patients)They supplement their revenue with a much broader and deeper sales volume of ‘other’ itemsThey don’t offer free ancillary services like personal accounts or delivery services that reduce profitabilityThey concentrate Rx business expenses, such as advertising, accounting, and other support services and spread those expenses across multiple outlets”I know, because I retired from one of those large pharmacies.” – Subscriber Mike M.Corey McLaughlin comment: Thanks for the notes. It’s interesting – and telling – that they independently arrived in our inbox from two people who clearly have first-hand experience with the subject and point to the same issues.According to the American Medical Association (“AMA”) and reports from the Federal Trade Commission and the House of Representatives, just a handful of PBMs control this part of the health insurance business. The AMA president wrote in August…Just four PBMs had a 67% share of the national market in 2023. OptumRx, CVS Health, Express Scripts and Prime Therapeutics dominate the field. Seventy-nine percent of PBM markets were deemed “highly concentrated” by federal antitrust standards. In other words, competition is low—and patients can pay the price.“Dan, Thanks for the great overview today ‘I’m not going to miss out… ‘I sent it on to my children to read. Just two questions from a chemist, not economist to ponder.”1- When the government bails out a failing company, they are picking a winner. When they take an equity stake, they are creating a winner.”2- Is a Trump account better or worse than Social Security as a forced retirement savings plan for the American youth. I detested Al Gore, but I liked his ‘Lock Box.'”Continued investing success to you and your readers.” – Subscriber Mike D.“Is it just me, or does no one else see a certain irony here, with your recent mention of the staffing and consulting firm Challenger, Gray & Christmas [in the report about layoffs last week]. Just in the St. Nick of time… so to speak.” – Subscriber Chuck B.McLaughlin comment: Puns are heavily discouraged around here, but now that you mention it…All the best,Corey McLaughlin with Nick KoziolBaltimore, Maryland December 8, 2025Stansberry Research Top 10 Open RecommendationsTop 10 highest-returning open stock positions across all Stansberry Research portfolios. Returns represent the total return from the initial recommendation.InvestmentBuy DateReturnPublicationAnalystMSFT Microsoft02/10/121,558.3%Stansberry’s Investment AdvisoryPorterMSFT Microsoft11/11/101,500.6%Retirement MillionaireDocADP Automatic Data Processing10/09/08970.7%Extreme ValueFerrisBRK.B Berkshire Hathaway04/01/09793.7%Retirement MillionaireDocGOOGL Alphabet12/15/16691.0%Retirement MillionaireDocWRB W.R. Berkley03/15/12608.0%Stansberry’s Investment AdvisoryPorterAXP American Express08/04/16507.8%Stansberry’s Investment AdvisoryPorterALS-T Altius Minerals03/26/09506.9%Extreme ValueFerrisAFG American Financial10/11/12492.8%Stansberry’s Investment AdvisoryPorterHSY Hershey12/07/07471.0%Stansberry’s Investment AdvisoryPorterPlease note: Securities appearing in the Top 10 are not necessarily recommended buys at current prices. The list reflects the best-performing positions currently in the model portfolio of any Stansberry Research publication. The buy date reflects when the editor recommended the investment in the listed publication, and the return shows its performance since that date. To learn if a security is still a recommended buy today, you must be a subscriber to that publication and refer to the most recent portfolio.Top 10 Totals5Stansberry’s Investment AdvisoryPorter3Retirement MillionaireDoc2Extreme ValueFerrisTop 5 Crypto Capital Open RecommendationsTop 5 highest-returning open positions in the Crypto Capital model portfolioInvestmentBuy DateReturnPublicationAnalystWSTETH/USD Wrapped Staked Ethereum12/07/182,334.1%Crypto CapitalWadeBTC/USD Bitcoin11/27/182,299.0%Crypto CapitalWadeONE/USD Harmony12/16/191,027.4%Crypto CapitalWadePOL/USD Polygon02/26/21649.0%Crypto CapitalWadeQRL/USD Quantum Resistant Ledger01/19/21587.4%Crypto CapitalWadePlease note: Securities appearing in the Top 5 are not necessarily recommended buys at current prices. The list reflects the best-performing positions currently in the Crypto Capital model portfolio. The buy date reflects when the recommendation was made, and the return shows its performance since that date. To learn if it’s still a recommended buy today, you must be a subscriber and refer to the most recent portfolio.Stansberry Research Hall of FameTop 10 all-time, highest-returning closed positions across all Stansberry portfoliosInvestmentDurationGainPublicationAnalystNvidia (NVDA)^*5.96 years1,466%Venture Tech.LashmetMicrosoft (MSFT)^12.74 years1,185%Retirement MillionaireDocInovio Pharma. (INO)^1.01 years1,139%Venture Tech.LashmetRocket Lab (RKLB)^2.35 years1,034%Venture Tech.LashmetSeabridge Gold (SA)^4.20 years995%Sjug Conf.SjuggerudBerkshire Hathaway (BRK-B)^16.13 years800%Retirement MillionaireDocIntellia Therapeutics (NTLA)1.95 years775%Amer. MoonshotsRootRite Aid 8.5% bond4.97 years773%True IncomeWilliamsPNC Warrants (PNC-WS)6.16 years706%True Wealth SystemsSjuggerudMaxar Technologies (MAXR)^1.90 years691%Venture Tech.Lashmet^ These gains occurred with a partial position in the respective stocks. * Editor Dave Lashmet closed the first leg of this Nvidia position in November 2016 for a gain of about 108%. Then, he closed the second leg in July 2020 for a 777% return. And finally, in May 2022, he booked a 1,466% return on the final leg. Subscribers who followed his advice on Nvidia could’ve recorded a total weighted average gain of more than 600%.Stansberry Research Crypto Hall of FameTop 5 highest-returning closed positions in the Crypto Capital model portfolioInvestmentDurationGainPublicationAnalystBand Protocol (BAND)0.31 years1,169%Crypto CapitalWadeTerra (LUNA)0.41 years1,166%Crypto CapitalWadePolymesh (POLYX)3.84 years1,157%Crypto CapitalWadeFrontier (FRONT)0.09 years979%Crypto CapitalWadeBinance Coin (BNB)1.78 years963%Crypto CapitalWadeYou have received this e-mail as part of your subscription to Stansberry Digest. If you no longer want to receive e-mails from Stansberry Digest click here.Published by Stansberry Research.You’re receiving this e-mail at pahovis@aol.com. Stansberry Research welcomes comments or suggestions at feedback@stansberryresearch.com. This address is for feedback only. For questions about your account or to speak with customer service, call 888-261-2693 (U.S.) or 443-839-0986 (international) Monday-Friday, 9 a.m.-5 p.m. Eastern time. Or e-mail info@stansberryresearch.com . Please note: The law prohibits us from giving personalized financial advice.© 2025 Stansberry Research. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from Stansberry Research, 1125 N Charles St, Baltimore, MD 21201 or stansberryresearch.com.Any brokers mentioned constitute a partial list of available brokers and is for your information only. Stansberry Research does not recommend or endorse any brokers, dealers, or investment advisors.Stansberry Research forbids its writers from having a financial interest in any security they recommend to our subscribers. All employees of Stansberry Research (and affiliated companies) must wait 24 hours after an investment recommendation is published online – or 72 hours after a direct mail publication is sent – before acting on that recommendation.This work is based on SEC filings, current events, interviews, corporate press releases, and what we’ve learned as financial journalists. It may contain errors, and you shouldn’t make any investment decision based solely on what you read here. It’s your money and your responsibility. |
