Tesla: Nobody’s laughing now!

Good morning!

We’ve got a monster week on the earnings calendar with roughly 30% of the S&P 500 and 30% of the Dow set to report. For the first time in a long time, I think we’ll see some cracks.

Here’s my playbook.

1 – Invest in the best or get shellacked with the rest

Amazon, Apple, Alphabet and Microsoft report from the S&P 500 side of the ring while Boeing, Coca-Cola, Caterpillar and McDonald’s come in from the Dow side. Roughly 84% of companies that have reported so far have beaten estimates and earnings remain on track for 34%+ YoY.

I expect big tech to rock but I also see some profit-taking ahead if I’m correct, especially if there’s any upside rate pressure in the 10-year. As always, use it to your advantage!

Buy low, sell high … Apple, Microsoft, McDonald’s … in that order.

Watch my take with Stuart Varney earlier this morning on Fox Business Network

2 – I love an underdog stock, especially when it scorches critics and naysayers

How things change! Analysts openly laughed at me. Two well-known money managers went after me on stage. Why? Because I said Tesla would hit $1,000 last November when it was trading for ~$400 a share and as it crested $600 at the beginning of this year because it didn’t fit their narrative of a stock in “trouble.”

Now everybody seems to want a piece of the action. Morgan Stanley is out saying that the stock will rally another 30% on manufacturing. Jimmie C. says $1,000. And so on … better late than never I suppose.

Hertz, BTW, just ordered 100,000 vehicles in what could be the single largest electric vehicle order yet. (Read)

My new target is $2,500 within 24-36 months.

3 – Buy Facebook IF this happens

 CEO Zuckerberg has remained immune to it all but the pressure is mounting because of the whistle-blower fallout. Earnings haven’t been impacted yet but will be. I think the case I laid out last week for a management purge is growing by the minute. (Read)

4 – Jaw-droppingly asinine

Taxes on unrealized gains?!!? Ok, Janet, other than the fact that this is the most asinine thing I’ve ever heard .... I’m game. How about credits for yet to be incurred losses for the rest of us?

This could be the biggest disincentive for investing in modern financial history (Read)

5 – Another reason I’m lovin’ it

McDonald’s is restarting share buybacks as it recovers from the pandemic. This is an excellent move and one that implies great confidence in the C-suite. It’s a tech company that happens to make burgers. The dividend is super for income-starved investors too. And, not for nothing, it’s a low-beta stock that could significantly boost portfolio performance over time. (Read)

Bottom Line

Up or down, it doesn’t matter … your money will work hard for you; the key is having the courage to let it.

Let’s make it a GREAT day and a super week!

You got this – I promise!

Keith

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