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Where to invest $1,000 right now

Oct 07, 2022

Good morning!

‍Rates pop, Dow drops on September jobs report.

Sigh.

I’ve been talking about hedging, buying puts and more for weeks.

I hope you’ve been paying attention because, if you are, that means you’ve had the opportunity to rack up some appealing profits like the VIX $30 calls I just recommended Trade with Keith readers close this morning.

At the same time, I hope you’re playing offense.

The Fed has reached the point where what’s happening is way beyond raising rates. It’s breaking stuff which means that the idea of Fed pivot, however flawed, is very real. The markets will take off like a rocket when it happens and, if it does, it will be without warning.

Here’s my playbook.

My thoughts on AMD

Don’t act surprised. I’ve been telling you this was coming for weeks on Varney & Co, Mornings with Maria, The Claman Countdown, the Cow Guy Close and more.

Companies figured out last quarter that they could “pre-announce” earnings adjustments and bake bad news into their stock price a bit early. (Read)

The latest is AMD which is projecting revenues and margins lower than expected on weaker Client segment revenue. Buuuuut…. Data Center, Gaming and Embedded Segments ALL grew significantly YoY. Total revenue is still UP 29% YoY.

I bought a few more shares this morning ahead of the bell.

Where to invest $1,000 right now

PepsiCo (PEP) takes delivery of Tesla’s first electric Semis this December. Prices are rumoured to be about $180K a unit but the (Anti) Inflation Reduction Act means that every Class 8 electric truck the company buys qualifies for as much as a $40,000 tax break.

If you don’t own at least a few shares of Tesla at this point, you are not paying attention.

Last producer in China, please turn out the lights

Things are so bad in China that even Chinese producers are leaving. Nearby countries like Vietnam are picking up the slack. Export values jumped from a measly $3b in 2008 to $101b in 2020, a 3200% increase. (Read)

Country-specific ETFs could be the thing, but I’d rather buy great companies doing business in the area because doing so helps concentrate profit potential.

Upgrade to paid

JPM says Zoom is all washed out (after it’s already down 73.1%)

I can only shake my head. JPMorgan issued a report calling Zoom “washed out” as it transitions which is just stunning considering the stock has already fallen 73.1% to $78.35 from 52-week highs of $291.31 per share. Sell-side analysts were falling all over themselves to recommend buying Zoom back then (including JPM’s analysts) if I recall correctly.

Yet another stunning example of why it’s important to do what Wall Street does, not what it says.

I’ve told you to avoid ZOOM like the plague repeatedly, BTW … along with META, PTON and a few other Wall Street darlings that struck me as disappointments in the making. And still do.

Two new recommendations later this morning

I’ll be sharing two new recommendations that may be perfect for current market conditions. The first is a logical beneficiary when it comes to all things e-commerce. The second is one of 5 high-income, lower-risk choices that may be ideal for retirees, even if you’re not retired.

Reserve your copy now