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The strong feed when the meek retreat

Nov 14, 2022

Good morning!

Inflation rages, FTX implodes, and markets are down as traders reassess the risks associated with both. The Nasdaq, of course, is getting hit hardest as yields rise.

Here’s my playbook.

FedSpeak week

Thanksgiving trading can be a wild ride, especially in recent years as computerization has accelerated. This year, it could be even more complicated because of all the cross currents.

Last week’s rip was the best since 2008, and that’s got a lot of FOMO glands going; don’t fall for it. Focus!
Yields dropped as the 10-year bond declined to under 4% (which means big money can get back on the gas because the cost of borrowing all that money to do it just went down).
Inflation is still a “thing.”

My take on what this means for your money with the fabulous Stuart Varney on Fox Business, ahead of the opening bell. (Watch)

The smart money is buying

The smart money loves great stocks on sale just like we do. They’ll buy all day long at the right prices, especially when they smell blood in the water from the scared money when it’s selling.

Case in point: Ray Dalio’s Bridgewater Associates has increased the size of its Palantir (PLTR) stake from 159,506 to 717,416 shares ($6M total) as reported in the latest 13F.

A “13F,” in case you’re not familiar with the term, is a quarterly report that the big money—usually institutional buyers and private hedge funds, etc.—must file with the SEC that discloses their US equity holdings. (Read)

Keith’s Corner: FOMO isn’t an investment strategy but buying great companies when they’ve been kicked to the curb is. Do NOT waste the opportunity!

I'm a lone wolf no longer: BoA "says" AMZN's a dog

Bank of America removed Amazon from what it calls the “US1” list but maintained a “buy” rating anyway. That’s like a weather forecaster telling you that a hurricane is just another storm. Not surprisingly, shares are down -$2.67, or -2.57%, as I type in early going.

I urged One Bar Ahead® readers to avoid AMZN last January. In fact, I said “sell.” Upgrade to Paid

There are better choices. Jassy isn’t Bezos, public anger over Amazon’s intrusiveness is mounting, and regulators are increasingly hostile. Shopping, which is how most people think about the company, is subsidized by AMZN’s other operations.

What medical investors should understand but most don't

The world is on the cusp of truly customizable medicine. However, most of it will not come from breakthrough small caps as has been the case in years past. Instead, the big moves will come from tech companies making huge technological jumps that are then brought into laboratories. (Read)

CRISPR gene-editing technology is a great example. If you’re not familiar with it, in plain English, that means doctors can “edit” your DNA to fix, cure, or reverse genetic mutations that cause illnesses like hereditary blindness, muscular dystrophy, or sickle cell disease, a blood disorder that damages major organs, just to name a few.

1.9 million Americans will be diagnosed with cancer this year. Imagine how differently they could live if this takes.

Invest accordingly!

Cheaper to "eat out" than dine in on Thanksgiving 🤦‍♂️

Millions of families are in shock when it comes to their grocery bill, especially as we approach the holidays.

Spoiler alert: It may now be cheaper to eat out than dine at home. (Read)

One Bar Ahead® readers have anticipated this for months, which is why I’ll have an update on a stock I’ve recommended later this morning in the weekly alert. Upgrade to Paid