Keith on Varney & Co: Burger King Moving to Canada & ISIS

Burger King heading for Canada through Tim Hortons – politicians are screaming and Obama is lambasting CEOs. What they should be doing is looking in the mirror. Congress and 40 years of bad policy are making this happen. Money always flows to where it is treated best and CEOs have a duty to their shareholders to profit.

Plus, ISIS and Middle East news hasn’t produced much market turmoil which is evidence to the spirit of capitalism.



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    What NOT to do When Inflation Returns

    Don’t be so quick to hit the sell button as inflation starts rearing its ugly head. Staying in the “game” is still the best alternative.

    As originally published at Money Morning
    You Can Make Money in Stocks (Especially These Three) No Matter What Rates Do
    By KEITH FITZ-GERALD, Chief Investment Strategist, Money Morning

    It’s commonly held wisdom that stock markets go to heck in a hand basket when interest rates rise. So, the thinking goes, you’d be better off selling ahead of time before that happens.

    No doubt it’s tempting to head for the hills with rates at historical lows, but it pays to do your research before you hit the “sell” button.

    The three companies I’m going to show you today, for example, can actually benefit from rising rates.

    First, let’s take an “Econ 101″ look at the impact interest rates can have on stocks, especially when rates start rising…

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      Keith on CNBC’s Closing Bell: Fed Minutes & BofA Settlement Payment

      In July’s FOMC meeting, Fed members announced they may raise the near-zero interest rates sooner than expected, citing improvements in the labor market. See why I believe why the Fed is grasping at straws.

      Also, here are my thoughts on the BofA mortgage mess settlement and why it was just a small slap on the wrist.



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        Tesla Will See a Huge Price Jump within One Year

        Tesla and CEO Elon Musk are making some bold moves that I believe will catapult the share price well beyond what others are expecting.

        As originally published at Money Morning
        Why Tesla Stock (Nasdaq: TSLA) Will Double in the Next 12 Months
        By KEITH FITZ-GERALD, Chief Investment Strategist, Money Morning

        I believe Tesla Motors Inc. (Nasdaq: TSLA) stock will double within the next 12 months.

        Bold? You bet. I know it’s not a popular opinion. In fact, I’d go so far as to say that the disdain for TSLA‘s bull run is only surpassed by the herd’s disdain for the overall bull market itself.

        For every quarter since at least Q1/2013, any sign of strength by this company has been met with jeers from some pretty powerful detractors.

        From the headquarters of GM to the front page of the MIT Technology Review, the chorus has been pretty consistent: Tesla is a hopelessly inflated stock, a flash in the pan and nothing more.

        Nonsense…

        This company is on track to see a stock explosion that will make its surge back in the spring of 2013 look like a speed bump. I want you to know today that I believe we are on the cusp of a few key developments that will make electric cars in general and Tesla in particular the wave of the future.

        Let me explain why….

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          Keith on Varney & Co: Market Rally and Yahoo

          I’m not crazy about the rally because it’s based on nothing more than the Fed’s magic wand and completely fabricated financial policy. Wages are flat to negative, the consumer is getting pounded. But bad news is good news so the markets are going to continue higher because that’s where the money is. You’ve got to be in to win…even if you hate it as much as I do.

          Also, I’ve advocated for a long time that the real ticket in Yahoo is Alibaba. The stock is probably good for a 15% “baba” bounce.



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            Keith on CNBC’s Closing Bell: Retail Sales and the Fed

            Retail data is pushing stocks higher. This is really the new normal…the data is so bad that the bet is the Fed won’t be forced to raise rates sooner than anticipated. This is like watching a train wreck in slow motion. It’s the worst retail data slowdown in six months. Job growth isn’t there and neither are household purchases. Inflation adjusted earnings are negative 0.2%. Retailers are now relying on promotions and discounts to get people in the stores and that’s going to cut margins come next quarter. It’s a vicious cycle. Pent up demand, as I feared when we talked about it this past winter, is a crock of you know what. Listen to my explanation as to why bad news is good news for the markets on Closing Bell.



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              GoPro is Not the Way to Go

              While the GoPro’s product is cool there’s no reason to think that this camera will stay ahead of the pack, or will be able to withstand the slumping demand that will always be a threat from improving smartphones.

              As originally published at Money Morning
              This “Pop” Stock Is One to Avoid
              By KEITH FITZ-GERALD, Chief Investment Strategist, Money Morning

              My friends were going camping recently and their bags looked like something from a space shuttle, with cords sticking out of nearly every pocket.

              “What on earth have you got in there?” I asked.

              A GoPro, chargers, mounting stands, waterproof containers… I tuned out the rest, to be honest.

              Just like I tuned out GoPro’s IPO, and will continue to ignore the stock for the foreseeable future.

              It’s simply not worth the investment. A trade, maybe, and only then if you’re nimble and have great risk management discipline. Here’s why…

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                Apple & IBM Walking Arm in Arm to Where?

                Don’t be so quick to believe the deal between these tech giants will lead to riches. If history is any indicator, this move is a move of desperation.

                As originally published at Money Morning
                These Industry Powers Have Never Been More Scared
                By KEITH FITZ-GERALD, Chief Investment Strategist, Money Morning

                Many investors are holding their breath even as they hold out plenty of hope looking at the recently announced deal between Apple and IBM.

                The upside, many say, is unlimited because it’s such a brilliant move.

                Hardly.

                In fact, the deal reeks of desperation and unprecedented weakness.

                We’ve seen this playbook before…

                We’ve Seen These Mergers Before

                Today’s computer market has some similarities to yesterday’s airline industry. With relentless competition and enormous downward price pressures, the only way to survive was to team up with rivals to improve economies of scale and broaden product outlets (In the case of airlines, acquiring flight routes and gates).

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