The worst isn’t over but the best is definitely yet to come

Good morning!

Markets are split in the early going which makes sense. Investors are beginning to look beyond the chaos, beyond the Fed and beyond politics.

Excellent!

Here’s my playbook.

1 – What to buy right now

My colleague and friend, the fabulous David Asman, and I talked about what to buy right now shortly before the opening bell. And, of course, why you’ll want to. (Watch)

Don’t get me wrong … the list of things that could go wrong is long and hardly distinguished: Russia/Ukraine, Chinese/Russian relations, politics, the Fed’s next move, slowing growth … even the next pandemic arguably makes the cut.

Profits are always the currency of success!

Especially when you can pick off the best names at a 20-30% discount at a time when they’re growing at 30-50% a year!

2 – Who’s right: Buffett or Wall Street analysts?

Wall Street analysts are downgrading big oil including – you guessed it – Occidental Petroleum. Morgan Stanley, for example, has recently noted that the company has outperformed its peers in recent months and now offers a less attractive valuation.

Meanwhile, billionaire Warren Buffett who knows a good thing when he sees one has let it rip. Recent filings suggest Berkshire Hathaway now owns some 91.2 million shares of Occidental and – importantly - continues to buy. (Read)

My money’s on Buffett.

BTW, if you’re an OBAer, please keep an eye on your email for this week’s update. Folks following along as directed with my favourite energy stock have had the opportunity to enjoy an 80%+ run which is why I’ll have instructions on taking profits and where to put it next.

If you’re not part of the One Bar Ahead™ Family but would like to be, I’d welcome the opportunity to earn your trust, goodwill, and business. (Click here to learn more)

3 – Suits out, sports bras and pet collars are in

Governments around the world track baskets of goods that “typical consumers” spend their money on to gauge inflation, spending and all sorts of other metrics.

People focus on the number because it’s easily reportable, but I think the composition is actually far more interesting from an investing perspective.

Case in point, the UK recently dropped men’s suits but included sports bras and dog collars. (Read)

4 – Road to table

Not sure if this is “ewwww” or “ooooh”

The State of Wyoming has just released an app for roadkill retrieval. It’s hard to imagine for city dwellers but collecting big game roadkill can be an important food source, especially when it comes to choice cuts from elk, moose, deer, bison and even wild turkey. (Read)

5 – Next to split?

HOG’s spinning off E bikes. Ford’s ditching legacy products to streamline EV production. Alphabet’s splitting 20-1. Amazon, too.

I think Tesla may make a similar move.

Team Musk made a 5-1 split at $1,374 which is within striking distance of where it trades as I type at $799.50. Musk is absolutely aware that lower prices attract retail dollars and, in turn, attract still more Tesla fanatics to the cause.

People are betting that inflation will hurt earnings and that’s true, it might. But longer term … bet against Musk?

No way.

Bottom Line

Give somebody a hammer and everything suddenly looks like a nail. The most successful investors and traders have a toolbox and use what's needed.

Which one are you?

Now, as always, let’s get out there and MAKE it a great day!

You got this – I promise!

Keith