The next stock to crush the markets
Sep 16, 2021Good morning!
Futures were down and the markets are down in early going. No surprise – the newsmongers are trying their very best to create sensationalist headlines.
Let’em!
The S&P 500 is up 19.3%, the Dow is up 13.7% and the Nasdaq is up 17.6% … all year to date. There’s still plenty of opportunity on offer.
Here’s my playbook.
1 – The next stock to crush the markets
Several of my recommendations are crushing the broader markets, a trend I expect to continue for the next decade. Perhaps more. Examples include Apple (AAPL) and Microsoft (MSFT) just to name two.
Now, here comes Palantir (PLTR).
It’s apparently the third most mentioned stock on Wall Street Bets behind GameStop (GME) and Alibaba (BABA) according to Stonks.com. Cathie Wood continues to buy.
And, what the heck, so do I.
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Anybody can pick stocks but knowing how and when is critical if you really want to succeed
Education is key. I’ve always believed anybody can be a fabulously successful investor or trader with the right perspective, knowledge, and tactics at their fingertips. That’s why I spend a tremendous amount of time educating the One Bar Ahead™ Family. Knowledge isn’t just power as the old saying goes. It can be a profitable advantage.
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2 – FDA is spineless
The FDA has apparently decided not to take a stance on backing Pfizer’s vaccines, saying US regulators have not verified all available data. Unbelievable! Both Pfizer and Moderna have released data showing that breakthrough cases are less frequent and less severe in people who are more recently vaccinated and boosted. ICU data from around the world supports this too.
Typical government.
Your personal views on the vaccine are moot.
What you want to focus on is that these folks who run the Fed, run the IRS and run the Postal Service are the very same folks who came into WWII prepared to fight WWI.
Private industry is always ahead of the game and in a situation like this one, I submit that’s a good thing. Use the drop to accumulate more Pfizer (PFE). Income is great and the upside potential is even greater.
3 – Done with Chinese stocks yet? You should be
I heard it repeatedly in Las Vegas … aren’t there any Chinese stocks worth owning right now?
The logic from concerned attendees usually went something like this … China’s booming, it’s got amazing entrepreneurial volume, and it’s the world’s 2nd most populated nation. Besides, Wall Street says they’re “cheap.”
Yep … they say that alright. “They” also say Ana Nicole Smith married for love, redheads are part alien, and that the CERN particle accelerator is an interstellar communication device.
“Wall Street” wants you to buy in so – odds are - they can sell out.
I sold all my Chinese stocks months ago and urged One Bar Ahead™ readers to do the same thing. I also said so on national television, most recently during a morning appearance with Stuart Varney.
Now, I am hearing from various sources that Beijing may require delisting in the US if Chinese regulators have their way. If you’re tempted to buy Chinese stocks because they’ve been beaten down, I get that.
Just remember this … Beijing does not care about how much of your wealth they destroy if it means China’s protected. The situation doesn’t have one red Yuan to do with being undervalued.
There’s over a trillion dollars at risk in more popular Chinese stocks. Didi Global (DID) is but one example. Alibaba (BABA) is another. JD.com is a third. (JD).
4 – Buy this on sale if you’ve got $1,000
Big data is big money and this company services the very top players including Amazon, Alphabet and Microsoft. The company is guiding towards positive cash flow for the first time in 2022 - Splunk (SPLK).
I like a few shares now, but I’d like ‘em even more at $115 a share if the market hands me that opportunity. It could go along for Palantir’s ride. Sell puts?
5 – Retail sales climb “unexpectedly” in August according to economists
There’s nothing unexpected about it. The world is reopening, and parents need to spend money as their children go back to school.
What catches my attention is the non-store spending and food and beverage sales jumped 5.3% and 1.8% respectively. This tells me Covid-19 delta-variant fears are more real than you’d think.
Bottom Line
Diversification is the financial version of "spray and pray." Concentrate single-mindedly on winners or you will miss 'em! The right tactics – selling cash secured puts, covered calls and more - can help considerably.
You got this – I promise!
Now, as always, let’s make it a GREAT day.
Keith :-)
