Wait till you see what Elon buys next – and why you’ll want to buy first

Good morning!

Here’s a stat that should grab your attention … the average bear market lasts 11 months. The median bear market is just 7 months.

The current bear market is 10.25 months.

My point?

No matter how badly current conditions make you feel or how scary they get, every day that passes is a day closer to the next run higher. There will not be a warning bell when the rally starts.

Invest/trade accordingly.

My take ahead of the opening bell on Meta, Block, Amazon and Microsoft (Watch)

Here’s my playbook.

Meta – still a $50 stock

Meta is reportedly going to lay off thousands in a “Musk-like” move that apparently has slackers trembling in their slippers. Sadly, the one person who’s really gotta go to my way of thinking is El Zucko himself. Meta is still $50 a share at best.

I suggest using any pop to reset positions accordingly.

Elon could buy Block, too

You’re hearing it from me first.

I think I figured out the end game. Twitter founder Jack Dorsey wouldn’t suddenly play nice unless he knew there was a bigger shark in the water. I think there’s a case to be made that Elon buys Block.

Musk will need a payments app for his new “super app” and Dorsey’s got it. Atlassian and Appian are both troubled. Block reported ecosystem profits of +29% while cash apps were +51%. It makes logical sense if he's intending to emulate existing apps like WeChat and the surrounding payments architecture.

Random thought bubble. Lots of people are going to hate the idea but you’d think people would have learned by now not to bet against Musk. Tesla is up 10,661% over the past decade.

Block could be worth a punt, but I’ll need to take a more detailed look.

Apple’s China problem isn’t

Apple’s down this morning on news that China’s draconian Covid policies are hurting production. Nothing more than a short-term problem.

I’ll have an update later this morning. Upgrade to paid

The smartest money just bought another $1B+ of their own stock

Berkshire reported over the weekend that the company has purchased $1B+ in stock. That’s a grand tally of $5 billion in just nine months. (Read)

Why this matters. It’s yet more proof that the smartest money on the planet sees value and is scooping up shares while most investors are running for the hills. In this case, their own.

Buy the best because the “best” is buying!

BTW, Occidental, a key Berkshire holding, reports Thursday.

It’s SNAFU at PLTR

The company reported some amazing numbers yet Wall Street has taken shares lower. SNAFU, an acronym meaning: Situation Normal All F___ Up. This is the 8th consecutive quarter of positive AFCF which, by the way, was $37 million and an 8% margin. (Read)

So now what?

Subscribe to One Bar Ahead® to read the rest in today’s Weekly Update a few hours from now Upgrade to paid

Bottom Line

Many people are upset about current market conditions. Others cower in fear. Still more realize that Wall Street has failed ‘em and want to get even.

Here’s the thing.

Setbacks and mistakes are not reasons to quit.

They're prompts to do a better job.

Let’s get after it!

Keith

PS: I will be speaking this Friday at the post-election virtual MoneyShow and I’d love for you to join me. Sign-up is FREE but space is limited so don’t delay if you’d like to attend. Click here to get registered