Buy this stock … but only if you’re as serious about beating inflation as I am
Oct 20, 2021Good morning!
Looks like mixed conditions are on tap today. Right on cue … the markets need to digest the recent run higher so a little profit-taking is in order.
Here’s my playbook.
1 – Bitcoin ETF up 4% in NYSE debut – how cool is that!
The brand-spanking-new Bitcoin ETF ($BITO) launched yesterday. Not only did it immediately tack on 4% but that’s the 2nd best opening day of any ETF, with nearly $1B of transactions taking place!
How “cool” is that, a word I don’t use very often to describe the financial markets when the fabulous Maria Bartiromo asked me for my take this morning. (Watch)
Two thoughts:
- This will be great for retail investors
- It will be interesting to see if BITO actually tracks Bitcoin prices because the ETF is twice removed from actual Bitcoin itself (Bitcoin -> Bitcoin futures -> $BITO)
Not for nothing, but the institutions will finally have a sophisticated vehicle at their fingertips and that should bring an entirely new flood of capital running.
2 – We beat Jimmie C. to the punch
CNBC’s Jim Cramer recently said that Chevron (CVX) is a favourite when it comes to beating inflation. His blessing will provide some strong support. Love him or hate him, Jim’s super sharp so this is great news.
Thing is … I recommended CVX to One Bar Ahead™ subscribers two months ago.
The stock is up 15.1% since then, compared to just -0.54% on the SPX. And, best of all still pays a healthy 4.8% yield which means it’s a great choice for income starved investors AND an inflation hedge.
Re-read the September issue if you need a refresher, or if you’re not a member yet, (Sign up by clicking here)
3 – I call bull on Facebook’s rebranding
Facebook made headlines yesterday when the company announced that it’s going to be rebranding. Supposedly this is because the company wants to have a name that reflects the company’s “broader portfolio”... or whatever that means.
I call bull.
Facebook is in full damage control mode and news like this is part of a concerted deflection strategy following the whistle-blower’s damning allegations.
Sell putskies in case there’s a management purge?
4 – Great … if you’re using the Soviet economic playbook
White House Press Secretary Jen Psaki laughed when pressed on supply chain problems, saying that it’s the result of the buying power of the American people. (Watch but try not to let your jaw hit the table)
I kid you not … I talked to a Soviet-era economics professor in 1986 who told me that’s exactly what the Kremlin told them to teach at Moscow University back in the day.
SaaS doesn’t rely on the price of eggs or meat. Neither does DaaS (Read)
Invest accordingly, or at least if you’re serious about beating inflation.
5 – Travel is back (ish)
United Airlines reported higher than expected revenue numbers yesterday, shocking everyone who expected a strong decline because of Delta – the virus, not the airline. People are ahead of themselves on airlines IMHO … United still expects Q4 capacity to be down 23% compared with 2019. (Read)
Bottom Line
Success doesn’t come from excuses.
So do everything you can to create the former while avoiding the latter.
You got this – I promise!
Keith
