📝 Apple: Always do what Wall Street does, not what it says

Good morning and Happy New Year – I am thrilled you’re here! 👋

One of the things I like most about modern financial markets is that there is always a way into the fight – meaning that there is plenty of profit potential up for grabs.

Especially on days like today!

Here’s my playbook.

1 – Pull back – schmullback

In one of my final missives of 2023, I told you to get ready for some shenanigans.

Traders “have a lot of money on the table” I said, and it would be just like the merry marauders to orchestrate a rug pull when skittish individual investors least expect it.

Looks like today is the day.

Why do they do this?

Simple.

Wall Street has spent billions learning how to push your buttons. They know that the more off-center you are, the easier it is to separate you from your money.

Take a deep breath.

Don’t play their games.

Play yours.

MyPOV: There may be $5-8T or more on the sidelines as everyone who exited last year in search of “safety” and 5% now realizes they’ve given up hundreds of percent. I don’t expect the selling to last long. And, if it does, so what. Buying great companies at a discount never gets old!

2 – Bitcoin tops $45,000

Digital currency is inevitable and I’m a huge fan as it climbs back to a 21-month peak. (Read)

The question investors need to ask themselves if they’re going to play along, is whether or not the risks are worth it.

Sure, you can make some money if Bitcoin et al charges higher (and it probably will) as cryptocurrency ETFs come on the scene, but at what cost? And at what risk?

Mark my words, the ONLY reason Wall Street is suddenly so interested in crypto is because they’ve figured out how to rig the game against individual investors, many of whom lack the nerves and the wallet needed to stomach the inevitable increase in volatility that’s ahead.

Don’t think for a freakin’ minute that you’re going to have the upper hand on any of the crypto ETFs when they arrive. If Wall Street made little or no money by offering such things, why would they suddenly be pushing so hard to approve ‘em.

Think about it.

Personally, I’d rather be farther up the food chain and own the banks warming up digital clearing because I get a) big upside, b) less volatility and c) a dividend that pays me for the risk I take as an investor.

That’s just me.

Meanwhile, my hat’s off to every cryptoratti on board! 💯

3 – Apple to Barclays: pfffft!

This is as predictable as watching the grass grow.

Barclay’s downgraded Apple this morning and the stock’s taking a tumble. (Read)

If I’ve said it once, I’ll say it 1,000 times… the last thing you want to do is pay attention to Wall Street analysts on stuff like this.

…Wall Street’s best traders don’t.

…Warren Buffett doesn’t.

…Ray Dalio doesn’t.

Why should you?

Not to be in firm command of the obvious, but jeez-Louise.

Apple has more than 2B devices installed worldwide, the company’s services business has more than 1B paying subscribers, double digit growth, the ability to change consumer behavior and add billions to the top line at the touch of a button. The ROE (Return on Equity) is 55% and the gross profit is nearly 40%. Apple makes nearly $2,000 a second.

This isn’t a company that’s in trouble.

MyPOV: One of the worst mistakes you can make as an investor is to look a gift horse in the mouth. Apple has returned 390.34% over the past 5 years while the S&P 500 has turned in 91.89% according to Koyfin. Buying a few extra shares today to take advantage of the dip makes all the sense in the world if you can. Or Sell Cash Secured Puts as a way to generate income AND get paid while you shop for much lower prices. Heck, even a plain ol’ LowBall Order would work, too.

BTW, if you don’t know what these things are and would like to learn, I’ll be rolling out educational modules later this year for the One Bar Ahead® Family if you’d like to learn more about how to do it right. I will also be speaking/teaching at the upcoming Las Vegas MoneyShow in February.

4 – Tesla breaks another record; sticks it to naysayers (again)

Love him or hate him, Musk knows how to get schtuff done.

Tesla’s latest delivery figures are out and Unka Elon has broken another record. This time around, Tesla released its latest delivery and production results confirming another record with 495,000 vehicles produced and 484,000 delivered. (Read)

I still want a Cybertruck!

And, not for nothing, I hope I’m smart enough to buy more shares.

5 – Yes, it’s still the “buy of the decade”

I had an engaging wide-ranging discussion with the fabulous folks at Dubaieye on New Year’s Day and thought you might enjoy it. And yes, I still think one of the most hated stocks on Wall Street could be the “buy of the decade” at these levels. (Watch)

Bottom Line

Like many, I would just as soon have seen green right outta the gate this morning, but all the selling doesn’t bother me. History shows very clearly that it’s almost always an opportunity.

Which brings me to the first key takeaway I want you to focus on this year.

The sooner you learn to recognize that fear is a travelling companion, the sooner you can view it as an opportunity.

As always, let’s MAKE it a great day and a fabulous year – you got this!

Keith 😊

PS: Thanks to everyone for the many emails, messages, and calls… our family is fine in Kyoto after the earthquake this past weekend. Please take a moment to send prayers, thoughts, and strength to those who have had their lives upended.