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☕ Apple’s EV was never about the car to begin with

Feb 28, 2024

Good morning! 👋

Both the S&P 500 and Dow are down from highs set last week and the market is coming off a mixed session yesterday – meaning the S&P 500 and the NASDAQ both went higher but the Dow declined.

Makes sense.

Traders are waiting for key inflation data later this week, so they’re taking a breather.

And savvy investors are waiting for ‘em to slip up.

I LOVE this business!

Days like today are like being at a poker table knowing that somebody playing to win a single hand is about to put down cards that can help you win every tournament for the next 10 years! 😊

Here’s my playbook.

1 – Don’t chase anything... ever

There are many great reasons to buy stocks, funds, and other investments, but FOMO isn’t one of ‘em.

Ever.

The path to profits is clearly defined by discipline, not emotion.

Think about it.

There’s a lot of good news priced in and the markets continue to press higher even though recent headlines haven’t been all that great and even though this earnings season’s big sweeping “beats and raises” are largely in the rearview mirror.

This tells you two things:

Anybody trying to chase specific stocks is setting themselves up for failure; and,
Savvy investors using simple, effective tactics we talk about often are setting themselves up for success.

Keep your emotions out of the equation!

Your money will thank you.

2 – Apple unplugs its EV

Apple is apparently going to wind down its EV effort. (Read)

People are falling all over themselves to call it a failure.

I see the situation differently.

The decade long project has never been about the car or even EVs from the get-go, a remark I made in 2014 when I was among the very first to begin talking about Apple’s 4-wheel ambitions.

I see what’s happening as a precursor to a monster move. (Watch)

Here’s why.

Apple frequently develops new technologies internally as a means of identifying huge potential markets. Sometimes decades in advance. Examples include the Apple Watch, Apple TV, smart phone sensor technology, and lately the VisionPro.

Interestingly and I think very tellingly, CEO Tim Cook has never acknowledged the car project publicly, instead referring to it as work on autonomous systems.

Indeed.

MyPOV: Apple’s EV has been about AI the entire time.

I believe the upcoming June developer event will be a watershed moment and that whatever Apple unleashes will redefine what the public (and competitors) thinks they know about AI the way the late Steve Jobs set the world on fire with his now legendary iPhone introduction in 2007. (Watch)

$275.

3 – Bitcoin $60K+

Bitcoin shot above $60,000 for the first time since November 2021. That puts it just below its all-time high of $68,982.20.

I'm still not a buyer and won’t ever be again, especially now that Wall Street has embraced bitcoin funds.

Don’t get me wrong, I'm super happy for everybody who is.

Just go in with your eyes open... please!

Blockchain is a real technology and will be very valuable.

Tokenized crypto coins are real technology and will be very valuable.

Bitcoin is used for fraud, gun trafficking, pornography, and a dozen other use cases on the wrong side of the tracks. $100B a year or more.

Everything else, to paraphrase JPMorgan CEO Jamie Dimon – with whom I agree on this btw – is just people trading amongst themselves. (Watch)

4 – Tesla, yeah but...

Tesla.

It’s as controversial as Musk himself lately.

I hope you’re on board.

The company is moving so far beyond cars that it’ll make your head spin.

People tell me, “Yeah but” all the time.

Just remember that’s the same line of thinking voiced when Amazon stumbled back in the day, Apple struggled on the cusp of bankruptcy, and Nvidia began to pivot into AI chips more than a decade ago.

TSLA has returned 1,123.78% over the past decade, an average annual return of 28.44% according to Finmasters. The SPY has tacked on 226.33% by comparison.

Just sayin’.

Case in point and a quick shoutout to Hester and David – 5 Fitzers - who live in SoCal and who sent this in from the City of Santa Barbara which has just installed massive backup batteries for the water system made by ... yep, Unka Elon and Co. (Watch)

5 – Right idea, wrong focus

The Biden Administration has introduced a bill to safeguard American’s personal information including sensitive genomic data, biometrics, personal health info, financial data and more.

GOOD!!!

Here’s where it gets tricky.

Forget about the foreign governments and hostile actors like China which seems to be doing everything it can to muck things up at the moment.

What our government should be doing is slamming down on insurance companies, mortgage companies and credit ratings agencies... all of which have made billions turning our most intimate personal details into products without our permission.

Besides, Beijing can hop on Facebook, Instagram and a dozen other social networking sites and learn damn near everything they need to know anyway. 🤦‍♂️

Keith’s Investing Tip: We talk continuously about the need to identify broad, unstoppable themes backed by trillions of dollars and cybersecurity is among the very biggest. EVERY investor should take this seriously for two reasons: a) it’s only going to get worse and b) the best cybersecurity stocks are still early days.

My favourite, for example, just reported earnings growth of 54% YoY and I expect that to climb substantially over the next 12-24 months if my take on what’s happening is correct. If you’ve got this covered – excellent! If you’d like some help, I’ll be here if that’s of interest.