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Still the one (and I hope you own it)

Dec 29, 2021

Good morning!

The markets are set for a sharp run higher today on news that a triple shot of Pfizer’s vaccine appears to protect against Omicron. Not that I suggested this would happen, but I did on November 29th and several times since...

I hope you did.

This week's rally makes it the Dow’s best December start in 24 years!!

Here’s my playbook.

1 – Pfizer’s still the one

Pfizer’s announced that 3 jabs of its vaccine are effective against the Omicron variant and that the company will have an Omicron vaccine by March 2022. Shares are up 46% year to date and there’s still plenty of room to go even higher. (Read)

Do you own enough?

2 – $120 oil by summer

Investors think of energy investing as an on-off switch lately but that’s a mistake. Energy is a continuum which means that you need to invest accordingly. OPEC is once again firmly in the driver’s seat and has every incentive to maximize prices. I think $120 a barrel by summer is absolutely possible.

Chevron is a perfect integrated play because: a) sales are growing rapidly; b) it’s more efficient than peers and c) has the best breakthrough energy investments on the planet. (Watch my take with the fabulous Maria Bartiromo earlier this morning here).

I’ll be adding shares this week!

3 – For once, Alexa wasn’t listening

AWS had a series of outages yesterday. Packages piled up, deliveries ground to a halt and users were left with a strange sense of peace and quiet, including yours truly. Interestingly, didn’t impact AMZN’s stock price one bit. (Read)

4 – I smell a rat

Instagram is a Facebook, err, Meta company and it wants you to start over. So Zuck’s minions have started prompting users to create new accounts under the guise of helping us “keep up” with smaller groups of friends instead of seeking likes.

Zuck’s at it again.

The real reason this is happening is that Facebook stands to gain billions if you restart because that provides their super-aggressive advertising algorithms with more precise knowledge about who you know and what you like.

Instagram is losing its mojo. (Read)

Still not touching Meta (FB).

5 – “Oops, we didn’t really mean it” – Chinese regulators

Chinese stock losses now tally $1 trillion leading regulators to backtrack on reports of a ban on overseas listings. Guess that got their attention because they’re now falling all over themselves to recreate the narrative. No word on who gets a long walk in the Gobi desert. (Read)

The West thinks in terms of results but China thinks in terms of strategic deception. This is a classic about "keeping face" because the original story didn’t stick any better than the whole “bat soup” thing did with Covid.

Don’t fall for it. You are still playing with fire if you’re buying Chinese stocks but that’s exactly what Beijing now wants you to do.