This stock has 24% upside no matter what Powell does, perhaps more

Good morning!

The markets are a skosh higher in the green as I type in the early going. Makes sense, given the CPI and Fed data on tap this week and the fact that traders know they cannot afford to get caught on the sidelines. Whether or not it stays that way is another matter.

Here’s my playbook.

Still ALL about the Fed

Like it or not, the Fed remains firmly in charge. The markets are expecting half a point when the Fed does its thing, but I can easily envision 75 bps because I think Powell is foolish enough to issue still more hawkish commentary when he gets in front of a microphone. (Watch)

There will be no warning bell when the Fed moves. Savvy investors cannot afford to be on the sidelines, tempting thought that me be!

One Bar Ahead® Action: The markets will take off like a rocket when Powell blinks. Anybody accumulating shares right now will be in the “catbird seat.” Doing so lowers risk, boosts profits, and magnifies compounding over time.

Reminder: You might want to rethink this whole investing thing if that concept bothers you.

Just sayin’...

What to buy if you fear more selling

People tell me all the time, “But there could be more selling”—and they’re right.

That’s why buying a few speculative putskies and inverse funds before the Fed meeting starts may make sense. Probably indices at this point because Wall Street is still keen to defend the pitch. Inverse funds, too.

London Stock Exchange + Microsoft power = better data

Microsoft bought a nearly 4% stake in the London Stock Exchange and announced a 10-year deal wherein the stock exchange will use Microsoft’s Azure, AI, & Teams for data infrastructure. (Read)

I hope I’m smart enough to buy more!

Why Twitter really wants to charge Apple users a premium

Everybody’s focused on Twitter, but what they should be thinking about is Apple. What this tells you is that Team Cupertino is so strong that not even Uncle Elon can get ‘em to break on their fees. (Read)

Did BlackRock sell you out?

BlackRock is being accused of being everything from an “illegal leftist scam” to a “political action committee” operating under the guise of an investment manager. That’s according to Florida Governor Ron DeSantis and Arizona Treasurer Kimberly Yee. Naturally, the company doesn’t see things that way, claiming that BlackRock is acting as a fiduciary to its clients. (Read)

What concerns me. BlackRock is in a precarious position. I don’t think the company can serve as a fiduciary yet argue it has no financial incentive when it comes to supporting climate change and dozens of other ESG-related initiatives—including decarbonization, EVs, etc. BlackRock has made billions talking out of both sides of its mouth.

This could get nasty, and I can envision BlackRock dropping under $600 a share unless there’s a prompt about-face or CEO Larry Fink is sent packing. Other investment houses could get caught in the fracas.

One Bar Ahead® Action Item: I will have a trade idea in today’s update a few hours from now. Upgrade to Paid

Bottom Line

Stop worrying about stuff you can’t control—the Fed, rates, China, politics, etc.

Start focusing on what you can control—picking great stocks, proper entries/exits, risk management.

Your portfolio will thank you!

As always, let’s MAKE it a strong week!

Keith 😊