☕️ Two stocks I’m watching this week even if the markets haven’t bottomed

Howdy! 👋 

As I noted in last night’s short, I think there’s a good case to be made that the markets are flirting with a bottom or may be in the process of making one.  

If I’m right, that sets up the summer rally I outlined in my Annual Outlook. (Watch) 

Either way, here’s the thing. 

The markets are forward-looking and tend to bottom months before economic data, sentiment surveys and fundamentals confirm a turnaround. In fact, by the time those things do turn, the markets tend to have already moved higher leaving latecomers struggling to keep up or even just catch up. 

The biggest gains come when fear is highest which is, ironically, when most investors hesitate. 

Here’s my playbook. 

1 – Why I am calm about the markets when everybody seems anxious and worried 

The venerable Stuart Varney kindly asked me back to his show today and wondered why I can be calm about the markets when everyone else seems so anxious.  

Simple. 

The data. 

Then, we spoke about two names that I’m watching closely this week. (Watch)  

2 – A strategic crypto reserve is great, but bitcoin may not be the best bet 

US President Donald Trump announced a ‘strategic crypto reserve’, and all things bitcoin jumped. (Read) 

Will I buy? 

Probably not. 

I think digital clearing is a much better bet as is the bank making it happen. Plus, I get a global platform, excellent leadership, $10T in a day already in motion and a handsome dividend, too. 

My fave has returned 117.89% since I brought it to the OBA Family’s attention versus 39.53% from the S&P 500. To be fair, bitcoin itself has returned 122.76% by comparison but with considerably more volatility and no dividend. 

The reason I prefer it over bitcoin at present is that it’s tied to the crypto ecosystem but without direct exposure to speculative risk, volatility and ongoing regulatory uncertainty. Plus, I sleep better so there is that. 🤷🏻‍♂️ 

I hope you’re thinking along similar lines.  

Digital currency is inevitable; the only question is what it looks like and how it makes the world turn.  

Keith’s Investing Tip: Many investors are hunting for needles, but I think it’s still early days with regard to crypto so buying the haystack makes more sense. At least to me, anyway. 

3 – Gee, where have we heard this before? 

Morgan Stanley’s Adam Jonas is out with a note reinstating Tesla as a “Top Pick” saying that lower car deliveries are a sign that the company is transitioning from a pure automotive play to a diversified AI and robotics play. (Read) 

Jonas then went on to say that the robotics opportunity is not factored into either the company’s bullish or bearish case but is becoming serious enough to move the stock. 

Ummm, yeah. 

We’ve been talking about both of those things for over a year now. So has my friend and colleague, Dan Ives. 

Still, it’s great to have company. 

I maintain that Tesla will be 3-5X a few years from now. My target more immediately remains $600 a share. 

4 – Microsoft’s Dragon Copilot could be a $40B game changer 

Microsoft has unveiled "Dragon Copilot," a new voice-activated AI assistant for healthcare. The tool helps doctors and clinicians automate documentation such as clinical notes, referral letters, and post-visit summaries, reducing administrative burden. (Read) 

People don’t see Microsoft as a “healthcare” choice yet, but the day is coming. 

Getting your money there first makes all kinds of sense. 

I think the medical transcription and documentation market could be worth $30-$40B a year all by itself by 2030 and that’s not even remotely factored into share prices at the moment. 

You know what to do. 

And if you don’t for some reason, I encourage you to think seriously about investing with this in mind. We are on the cusp of customizable medicine and it’s going to create another generation of millionaires. 

I’ll be here if you’d like some help. 

5 – FCC fires back: the reason the EU can’t build a tech giant 

FCC Chair Brendon Carr told the world that the US will defend its tech interests in the face of ongoing EU regulation. (Read) 

Game on. 

I’ve talked with scores of super intelligent, super eager EU execs over the years and the tune is always the same… the EU has a problem because it is always easier to regulate than innovate. 

Instead of asking why Silicon Valley continues to eat their lunch, EU regulators frame Big Tech as an existential threat—too big, too powerful, too unfair.  

Yet, Europe hasn't created a single major consumer tech company to rival the U.S. or China in decades. Nokia? Faded. SAP? Enterprise-only. Spotify? The rare exception, but still dependent on Apple and Google’s platforms. 

If you can’t build a trillion-dollar tech giant, the next best thing is taxing and regulating the ones that exist. And politically, that plays well—an easy way to score points against “American dominance” while ignoring Europe’s own failure to incentivize risk-taking, VC funding, or the kind of entrepreneurial culture that made Silicon Valley what it is for better or for worse. 

I would love nothing more than to see a new crew of EU tech experts build something extraordinary, but the EU has got to create an environment that’s conducive to innovation first. 

Bottom Line 

I tend to come down hard on the chase the money crowd.  

I've been closely involved with global markets for 45 years and have three things burned into my brain:  

1. The markets are the only store on earth where people fear a sale  
2. You make your money on down days, not chasing things  
3. Investing is like a rodeo; you ride to the buzzer when you get a great bull or even a rank one (and I speak from experience working on a ranch which not a lot of folks know) 

As always, let’s MAKE it a great day and start the week strong. 

You got this – I promise!  

Keith 😀