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Powell’s remarks could be a buy the event moment

Dec 15, 2021

Good morning!

The markets are relatively flat ahead of the fed as I type. People talk about all the selling in recent days but really, it’s been a “buyer’s strike.” I think Powell’s remarks could be a “buy the event”... event.

Here’s my playbook.

1 – Tapering isn’t hawkish

Economists and pundits are fighting about how “hawkish” Fed Chair Jerome Powell will be when he speaks but they’re missing the point. Tapering isn’t hawkish by itself, merely hawkish related to pandemic-related stimmies.

I think it could be a “buy the event” moment.

Everybody already knows inflation is a problem so that’s off the table as a surprise. Same for rate hikes and consumers. Which leaves managing this mess. (Read)

Let’s hope Powell gets it right.

2 – Buy these companies if you want stability AND growth

Big money managers tend to concentrate on big names this time of year because they want two things: a) big bonuses and b) to avoid being asked why big names aren’t in their portfolios.

I shared two of my favourites with the super-savvy Maria Bartiromo this morning and why I like both companies right now ahead of the Fed. (Watch)

3 – Become a billionaire, live forever

Investing in immortality is the next big investing gold rush for one simple reason … the big money is headed that way. Bezos, Musk, Thiel … they’re all on board with the idea.

The latest billionaire to join the party is Brian Armstrong, founder and CEO of Coinbase. He just launched a company called NewLimit. The goal is reportedly to make it so you can “scrape a skin cell off your arm and reprogram it into a brain cell.” And to “restore the regenerative potential we all had when we were younger, but somehow lost.”

Call me intrigued. (Read)

BTW, I’m all over this trend in One Bar Ahead™ starting with DaaS, Diagnosis as a Service – a term my oldest son, Kuni coined earlier this year. It’s a trillion-dollar industry and, unbelievably, most investors don’t see it coming. You can read more about DaaS here for free. (Click)

4 – Forget the politics and focus on the money

Tesla CEO Elon Musk didn’t mince words when he called Senator Elizabeth Warren “Senator Karen” during a spat about taxes. And I’m with him on this.

Musk will pay more taxes this year than any American in history, an estimated $3-$15 billion depending on how he recognizes recent stock sales.

Forget the politics.

What the Beltway Bandits on both sides of the aisle should be doing is creating an environment that fosters innovation. Taxes come with success and that’s been lost in the argument.

Taxes or no taxes - I’d think twice about betting against Musk as an investor. Tesla has redefined every industry it enters which is why I continue to believe shares will be $2,500 a few years from now.

5 – Peloton calls bull___ but the damage has been done

DigiTimes published a report that Peloton has binned new product development and shares dropped 7% almost instantly. They’ve come back some after company reps refuted the story, but the damage has been done.

JPMorgan took Peloton off its list of top internet stock picks. That’s saying something considering JPMorgan was one of two lead underwriters on its IPO! (Read)

Credit Suisse downgraded the stock to neutral from outperform five days ago. That’s Wall Street speak for “sell”. (Read)

I told you to avoid PTON a year ago early on and am glad I did. Shares are down 77.1% from the 52-week high of $171.09.

Turns out slapping an iPad on an exercise bike just simply isn’t world-changing!!