This could be Apple’s biggest win yet
Aug 30, 2021Good morning!
Hurricane Ida has hit the Gulf Coast and is now a tropical storm; I hope that you are both hunkered down and safe if that’s where this email finds you this morning. Meanwhile, the markets are trying to make another move higher following Chairman Powell’s remarks last Friday.
Here’s my playbook.
1 – Fed Chair Jerome Powell did the impossible – what’s next!
Admittedly, I had my doubts that he’d be able to last Friday. His remarks set up a rally into the end of the year if he can keep various Fed Presidents from creating some real fireworks at the September meeting. My latest calculations suggest the markets finish 2021 roughly 5-8% higher from here which implies the S&P 500 at 4,675, perhaps even 4,725.
Still, I expect the path to be rockier than people think which of course spells tremendous opportunity when it comes to buying on dips and trading volatility itself.
Watch my take with the super-savvy Stuart Varney moments ahead of the opening bell this morning
2 – Add another 10-15 cents per gallon at the pump?
Hurricane Ida is the first storm of the year to hit the Gulf Coast. The area hit accounts for roughly 18% of national production. Best case, I think it adds .10 cents per gallon, but flooding, damage and outages could boost that if production doesn’t come back online quickly. President Biden’s policies could magnify the impact.
I’ve got my eye on two energy companies.
3 – This could be Apple’s biggest win yet
According to an analysis by the Kaiser Family Foundation (KFF), 72% of U.S. insurers who previously waived cost-sharing or entirely covered treatment costs have quit doing so and another 10% will be phasing out such waivers by the end of October.
Par for the course and, to my way of thinking, disgusting. Insurance companies want you to believe everything is covered in the advertising but then deny and want to tell the court system nothing is covered.
I think the move highlights DaaS (Diagnosis as a service) and why you ought to be thinking about wearable medical tech from the likes of my favourite fruity computer maker and a few select others.
4 – Zoom: why I expect great earnings but lower stock prices
Zoom reports later today. My back of the envelope calculations suggest the company may report $1.15 - $1.20 or so versus expectations of $1.16 but I expect lower prices ahead. The stock is down 40% from pandemic peaks and wants to go lower. The delta variant simply buys some time if you’re holding. I’m not.
5 – Amazon backed Rivian files for IPO with an $80 billion valuation
Totally cool trucks. Limited production begins later this month in Illinois with deliveries only reportedly weeks away. I think the truck looks great and I’m super tempted. But, $80 billion??!!
Bottom Line
Investors without objectives are like travellers without a destination.
What are you waiting for?
Chart a course today!
I’ll help.
Now, let’s start the week strong!
Keith
PS: It’s “issue week” and you know what that means … two new recommendations, new research and investing ideas worth your immediate attention. If you’re on board, awesome! If not and you’d like to be, I’d love to earn your trust, goodwill and business. Reserve your copy of the September One Bar Ahead™ issue now
