Most investors could double shares and still not have enough!

Good morning!

The markets are looking uncertain as I type, ahead of JPow’s comments on Wednesday morning.

Here’s my playbook.

1 – Why I think we’ll see a Santa Rally yet

Fed Chair Jerome “it’s transitory” Powell’s inflation call will go down as the single worst in Fed history. Still, I think he’ll see the error of his ways this Wednesday.

Assuming I am correct, that points to a Santa Klaus rally into 2022. Here’s my take with the fabulous Stuart Varney earlier this morning. (Watch)

Many people fear rising rates but what they don’t realize is that the damage many people are worried about usually starts at the end of a tightening cycle rather than the beginning which is where we are now.

• If you sold out in 2015 when the whole rising rates narrative started, you missed the run into September 2018 and a run of 41% on the S&P 500, 61% on the Nasdaq and even 50% from the Dow.
• The markets ran higher from roughly 2003 to 2005 while earnings grew all the way into 2010.
• Anybody bailing in 1995 missed the run into 1999.

As long as earnings are rising – and they are – history suggests the end game is a ways off.

Speaking of which, lots of investors think they’ve missed the big runners. In some cases, it’s true. A $1,000 investment in Tesla ten years ago grew 20,000%+ to more than $204,000 as of last month.

But here’s the thing.

The run isn’t over!

In fact, there are 10-15 “Teslas” out there right now and it’s my job to help you find ‘em. (in One Bar Ahead™)

2 – No doubt Apple’s worth $3 trillion

JPM raises $APPL price target to $210 because of “high demand” and expected earnings in early 2022 - not to mention the 5G iPhone SE. Better late than never as the old saying goes.

As we have discussed many times, the former is baked in exactly as we’ve discussed and the latter will draw from an installed base of 300-400 million existing iPhone users as well as something on the order of 1.4 billion Android users who want the Apple experience. (Read)

Once Apple takes out $210 – and it will – my target is $400 within the next 24 months.

Outlandish?

Not really any more than it was when I said last January Apple would hit $200 and people not so politely laughed in my face. One critic was particularly nasty calling me to task on Twitter saying “my advice was so 1999”; not surprisingly, he’s since vanished into the ether.

Apple’s medical pivot is 3-5X the company’s global iPhone sales and that hasn’t even remotely been priced into the stock yet. Then there’s the Apple Car, new cloud-based offerings, subscriptions, digital money and more.

But don’t worry, JPM and other traditional analysts will tell you that one day, too!

3 – Pfizer inks $6.7 billion deal to strengthen blood cancer therapies

Pfizer, my favourite “Virus+” company just inked a deal to buy Arena Pharmaceuticals for $6.7 billion in cash which broadens its stable of blood cancer therapies. It’s the latest in a long line of deals intended to expand the company’s treatment pipeline. (Read)

Customizable medicine is just around the corner and Pfizer’s the leader.

Do you own (enough) shares?

4 – Now they earn $1 million a year

I have very little patience for the “I can’t crowd” because you can.

This story really hits home for me because here you have a young couple that’s redefining life on their terms with a business the two of them started in their garage. Now they make $1 million a year. (Read)

I started cutting lawns and used the money I saved up to place some of my first trades. In fact, I still cut lawns today when I want to clear my head and to remember why I do this.

5 – 45% of sales but only 5% of the demographic

I place a huge premium on companies serving industry, especially when it comes to retail. Contractors, for example, make up 45% of Home Depot’s sales even though they make up just 5% of the total demographic shopping there. (Read)

They also tend to be far stickier which is why Lowe’s has recently made contractors a priority.

Bottom Line

Many aspiring investors and traders fail because they try to push trades that are not there just because they "can." Better to "do" when the setup you know pays off is there.

Like it is for Apple or the nearly 1 dozen other stocks I recommend in One Bar Ahead™. (Learn more)

Now, as always, let’s make it a GREAT week.

You got this – I promise!

Keith :-)