Bond Market Calls Warsh's Bluff: 3 Stocks to Sell Now

The bond market is calling out Federal Reserve member Kevin Warsh's bluff on inflation. The market and the Fed are at odds, leading to potential volatility in the markets.

Investors who are contrarians see this as an opportunity to purge their portfolios of precarious payers and find bargains on the other side of the turbulence.

Three companies that are being targeted for sale by these investors include UPS, Nike, and Vail Resorts.

UPS's stock is stuck in reverse after its July 28 earnings report, which saw a significant drop in price. The company's dividend accounts for 99% of its free cash flow over the last year, making it unsustainable for future growth.

Nike's dividend aristocrat status may be short-lived, as its payout ratio has increased from 27% to 110% of FCF over the past five years. The company is also facing challenges due to tariffs and slowing sales in China.

Vail Resorts' business is heavily dependent on winter snowfall, making it a tough investment to predict. The company's dividend has flatlined and its cash flow has been pinched by a historically dry season in the US.