I’d rather own this company any day!
Sep 23, 2021Good morning!
Futures are trying to claw their way higher this morning, but it appears the two biggest market worries have been put to bed … for now.
Here’s my playbook.
1 – The Fed remains accommodative
We all know this will end badly at some point but our job until then is to make as much money as possible. Anybody betting on the Fed tightening now has to play catch up – meaning they’ve got to buy stocks this morning.
We have no such problem, though.
We’re in to win and always have been. Big + liquid = profits, especially for big tech and big finance which is where the bulk of cash will go when the spigots open. Visa’s dirt cheap at the moment.
2 – China IS bracing for Evergrande’s failure
The WSJ reports this morning that Chinese officials have told local officials and the Chinese financial community to prepare for a storm if Evergrande fails.
Remember my comments about China not taking action until something’s in the works? This is the “action” I was talking about. China doesn’t move pre-emptively but, instead says and does things in the name of preserving two things: control and “face.”
Notice that China has not warned Westerners. Just sayin’ … shares rose 25% last night which would be consistent with a last gasp.
The WSJ report matches the information I am receiving from trusted sources inside China. They know something and placating Westerners yesterday with reports that Evergrande will make a bond payment to foreign bondholders is a distraction.
Blast shields up.
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3 – Another reason to own Tesla
Elon Musk offers Tesla insurance to drivers in California at rates that are 20-30% lower than comparable offerings from traditional insurance companies. Now he’s going to Texas and NY, two additional and exceptionally expensive markets.
Self-insurance is needed in the car market … in the health insurance market … and on a closely related note, in the mortgage market where homebuyers are held hostage by credit agencies, lenders and bankers.
Lemonade (LMND) is an intriguing company in this space right now, and is trading for 60% off its highs. Could be worth a look, but in the meanwhile…
Go Elon!!
4 – 74% of Americans begin their search here
People tell me they’d rather own Snap, Twitter, Pinterest, or Roku frequently. Good luck with that. Amazon’s ad revenue is worth 2.5X the revenue of those companies combined.
Shares are still dirt cheap considering the company has an annual run rate of 87% YoY which works out to roughly $30 billion with a “B”.
I’ve been encouraging people to buy on weakness, and I hope you have!
5 – Cathie Wood scooped up shares, but I’d rather own another company
Tech maven Cathie Wood has reportedly scooped up shares of CRISPR Therapeutics (CRSP) in recent weeks via the ARK Genomic Revolution ETF. Some say she’s doing a little dumpster diving considering shares are off significantly from their highs. I don’t think so. My take is she’s moving ahead of the next gold rush in anti-ageing investments.
I’ve got a stock in the same space that I like more because it’s better valued, farther along and could pop sooner. I’ll have details in the very next issue of One Bar Ahead™ which comes out just 7 days from now! Join now
Bottom Line
Why not you??!!
That’s the question I put to an uncertain young investor a few months ago when he asked me if he can make a fortune in the markets. He was doubting his own ability to make money because he’d fallen for the hype that others “get lucky” or that “he could never do what the big money does.”
“Flip that around” I suggested.
You should have seen the spark in his eyes when his brain connected with my message. People make gobs of money because they decide to, not because it’s handed to ‘em.
By the way, we’ve got a call scheduled this weekend (at his request) so he can share all the wonderful things he’s accomplishing and the path he’s now on.
YOU can absolutely do this!
Now, as always, make it a GREAT day.
Keith
PS: Calling all OBA’ers … I will be holding a special Zoom cocktail hour next Friday to share my VIX screens and teach you how to set ‘em up on your own. Plus, what to look for and how to trade volatility. Details will be in tomorrow’s Ask Me Anything!
PPS: If you’re not part of the One Bar Ahead™ Family and would like to be, you can get on board quickly and easily here. If not, no worries!
