The best stock to buy if Russia goes “hot”
Jan 28, 2022Good morning!
Stuart Varney asked me Monday if Apple, Microsoft, and Tesla could put a floor under the markets.
"The one you want to watch is Apple” I said.
It’s the world’s largest, most liquid and most widely held stock. When the selling stops on Apple, that’s the go sign. (Watch)
Not surprisingly, Apple’s on the move after blockbuster earnings but it’s still too early to tell if anything else follows.
Here’s my playbook.
1 – The best offense is always a smart defence
People ask me constantly if there’s any place to hide and under normal circumstances, I’d say yes. But the current round of selling is like the tide going out … the Fed spent 12 years inflating markets and now the air is simply coming out of the balloon.
What you want to do is simple:
- Hunt for bargains in the “best” companies ONLY / slow down buying
- Harvest profits/minimize losses/trailing stops
- Add to inverse funds
2 – The best stock to buy if war breaks out
Putin isn’t backing off and the smart money is consolidating in stocks like LMT even as the selling continues. Shares are up almost 11% in a month, and that’s not by coincidence. The company makes critical defense products and is logical beneficiary under the circumstances.
Shares could go a lot higher, or at least buck the downtrend. (Read)
Speaking of which…
Let me ask you something - and full caveat - it might sting a bit.
Did you miss LMT’s run?
You’re not alone if you did.
Brokers and advisors pushing the same tired old drivel are playing not to lose which holds you and your money back.
Playing to win is very different.
For example, I specifically recommended LMT in the November issue of One Bar Ahead.™ Shares are up a stunning 18.2% through last night’s close versus a drop of -6.8% from the S&P 500 over the same time frame.
Translation … One Bar Ahead™ readers following along as directed have had the opportunity to pull ahead of the markets by 25% without using options.
Warren Buffett has 75% of his portfolio in just 4 stocks and that’s how you play the game … by concentrating on where stocks are going. Not where they’ve been.
If you’ve got this covered, that’s fabulous; I think it’s great and I tip my hat to you for having been ahead of the game too – well done! If not, I’m here. (Get on board right now).
3 – Apple - could go lots higher
Apple positively nailed it yesterday with earnings and, as noted, the stock is up materially as I type. The numbers are largely the result of iPhones which everybody expected but also massive growth in the company’s services business which WE – you and I – have been talking about for over a year now almost exclusively. (Read)
Also of note, CEO Tim Cook said the supply chain is “improving” which is exactly why savvy investors should focus on CEO’s, not analysts or politicians … another point I’ve made repeatedly, including most recently this past Wednesday morning during a conversation with Maria Bartiromo. (Watch)
My target is still $200 a share BTW; we just might have to wait a bit longer.
4 – Chevron: analysts got it wrong again
Analysts kill me … they often re-affirm buys after prices have risen and sells often long after a stock has fallen from grace. Now, Chevron “missed” according to the same bunch. (Read)
Not in my eyes.
5 – FUD, thud, and crud in the Hood
Robinhood is now one of the worst performing IPOs since the start of Covid-19. And all those users who threatened to take their accounts elsewhere after the GME/AMC situation apparently did. Oh, and the funny thing about pay for order flow is that you can’t get paid when there isn’t any. (Read)
Tech-bros around the world are undoubtedly crushed as are their bank accounts.
Bottom Line
When in doubt, zoom out.
You got this – I promise!
Now, let’s get out there and finish the week strong!
Keith
