Elon Musk scores again
Aug 10, 2021Good morning!
Futures jumped after a better-than-expected jobs report showing 943,000 jobs added. This is exactly the scenario I warned about in this past Monday’s 5 with Fitz. “Stay frosty” in case there’s a late day fade.
Here’s my playbook.
1 – 3 easy steps to beat any big data drop (like the jobs report)
The markets often go quiet before big data reports like the jobs numbers that hit earlier this morning. People think it’s because traders are nervous but in reality, they’re some of the calmest, most professional people around.
They go quiet because they’re waiting for us – you and I – to make a mistake. I say do not give ‘em the opportunity!
There is nothing you can do about short-term noise but there’s plenty you can do to stay focused.
First, double-check your trailing stops; if you’re really nervous, tighten ‘em up. You can always re-enter later. Second, have a small position in inverse funds on hand; these will help take the sting out of any data-induced selloff. Third, know what to BUY; big traders are doing the same thing. They’re hoping to scare you into selling at which point they’ll start BUYING.
By the way, the number of jobs created is almost irrelevant. It’s how traders perceive it based on what they think the Fed does next that counts.
943,000 … I’ll take it.
2 – Musk scores again with Starlink
CEO Elon Musk has a way of achieving breakthroughs most people deem impossible. We’ve talked about that for years and anybody following along with my research has had the opportunity to capture some serious $$$.
Now we’re hearing that Musk’s Starlink is nearly as fast as broadband Internet. Keep in mind that Starlink is the ONLY satellite Internet provider in the United States capable of handling modern Internet speeds. At 97.23 Mbps, that’s 4.9X faster than HughesNet, the company’s closest competitor.
The path forward is through Tesla (TSLA) shares which is why I own ‘em and hope you do too.
3 – Buy this stock if you’re worried about inflation
Many investors are making a horrible mistake. They’ve been taught that energy, gold and other commodities will be a great inflation hedge and have piled in. That used to work but it amounts to little more than treading water these days because of all the money sloshing around in the system.
If you want to grow your money in the face of it all, the path forward is to own companies making a) products the world cannot live without and b) have products offering built in improvements that constantly offset inflation.
Apple (AAPL) is my favourite by a long shot. People may complain about higher gas prices, rising food costs and the like. But ask yourself when the last time was you heard about somebody ditching their iPhone because of cost??!!
Read the Inflation Myth by Dr. Mark Mobius if you’re uncertain about what to do next. He makes the case far more eloquently than I ever could. Click here to order your copy.
4 – If you can’t beat ‘em, join ‘em.
JPMorgan has quietly unveiled access to half a dozen crypto funds over the past 30 days in a move allowing advisors to begin placing private wealth clients into funds from NYDIG, Osprey Funds and Grayscale Investments. You’ve known this was coming because we’ve been having that conversation for over a year. What till you see what JPMorgan does next!
5 – Unleash your inner “Vader”
This was too cool not to share – a Darth Vader Meditation Chamber Desk. I know … it’s not investment news but what the heck, it IS Friday and there’s nothing making headlines that we haven’t already talked about for months.
Besides, who knows what great stocks you’ll uncover with the Force??!!
I have my eye on a few!
The Force is strong with this one
Bottom Line
Many people strive for the way things were, especially when it comes to their money.
The real edge in life and in the markets comes from being able to adapt quickly yet remain focused on success.
Flying by the seat of your pants doesn’t count!
Let’s finish the week strong.
You got this – I promise!
Keith
PS: The August issue of One Bar Ahead™ drops a few hours from now. I’m super excited to share where I see markets going next as well as the two new recommendations that’ll help us grow and protect our money at the same time. Keep an eye on your email!!
