☕ Will the SEC investigate itself?

Good morning! 👋

Not a lot going on as we await earnings and inflation data.

Sometimes that’s a good thing.

Why?

Taking a step back helps you maintain clarity and a clear perspective, especially in the financial markets.

What’s more, “nothing” often shows you that trying to force a decision or an outcome isn’t usually in your best interest. So don’t make that mistake.

Better to let the markets show you their hand, then play yours.

Here’s my playbook.

1 – $META: Deflect & Distract

META says it will restrict teen content as complaints mount about content that’s harmful to youth. (Read)

My guess is there’s more to the story.

This strikes me as yet another twist in a long line of distract and distort strategies used whenever El Zucko and his C-Suite sense regulators and lawyers closing ranks which, if reports are correct, is happening with more than 3-dozen AGs on the warpath.

Naturally, shares are higher this morning as I type. 🤦‍♂️

The lure of a quick buck is evidently more of a draw than moral fiber.

Keith’s Investing Tip: People often tell me they won’t buy MCD because of the junk it puts in its food yet pile hand over fist into META. Or vice versa. You’ve got to do what’s right for YOU and makes sense given your moral compass. The markets do not care.

2 – Will the SEC investigate itself?

The SEC’s X account was hacked yesterday, and a false tweet posted saying that Bitcoin ETFs had been approved. Prices shot up a few thousand $ then crashed just as fast when Gensler et al said, “it wasn’t us.”

Here’s the thing.

The SEC would require an investigation into any publicly traded company producing a fraudulent announcement, especially when it moved markets and impacted millions of investors as was the case here. (Read)

What I want to know how the SEC can claim with a straight face that it protects millions of investors when it can’t even protect the agency’s own social media account??!!

Speaking of which, X said that the hack resulted from an unidentified individual obtaining a compromised phone number and the SEC’s X account not having 2-step verification turned on.

Evidently, there are no adults in the room.

Meanwhile and if you are interested in the Bitcoin ETFs that are reportedly imminent, I’d tread extra carefully. If a false tweet can move markets that much, imagine the kind of volatility that’ll accompany the real announcement.

There is no trend, just raw speculation.

Go to Vegas or Monte Carlo… at least you’ll get free drinks.

Yeesh.

3 – Boeing vs Airbus

The airplane panel blowout that knocked shares of Boeing down benefited rival Airbus on the news.

What to do?

Boeing can’t seem to get out of its own way lately, but Airbus continues to stack up orders and, evidently, public confidence.

I think Wall Street will defend Boeing stock so, as tempting as it is to short the dang thing, buying a few speculative Airbus shares could be interesting.

4 – Saudi Arabia: Actually, we have $2.5T in untapped mineral reserves

The Kingdom has suddenly and dramatically increased the value of its mineral reserves from a 2016 figure of $1.3T to $2.5T as of today. (Read)

I can’t help but wonder if the $20B in foreign mining exploration licenses expected to be signed this week has anything to do with it.

Deals are funny that way.

The value – like IPO pricing – always seems to climb higher when somebody has some skin in the game.

To be fair, I do applaud the Kingdom’s efforts.

Saudi Mineral Resources and Industry Minister Bandar Alkhorayef noted that it’s important to move beyond oil with both “security and stability” being critical to the process.

It will be interesting to see if foreign firms are allowed to independently verify the valuations and reserves tally. If so, this is the real deal.

Might have to start watching mining companies a little more closely. Or a singularly focused ETF like the iShares MSCI Saudi Arabia ETF (KSA).

5 – Alzheimer’s + AI

Scientists just made a huge discovery regarding Alzheimer's… they identified 5 specific types of the disease. (Read)

This catches my attention for three reasons.

1. Alzheimer’s runs in the men in our family so I’m racing gremlins personally.
2. This research provides additional insight into questions about why various drugs fail to treat Alzheimer's effectively in some patients.
3. It opens the gates to new money and new research into Alzheimer's medications, substantially all of which will be aided by AI.

A report from Marketdataresearch.com suggests that the global Alzheimer's market could grow to $15.5B by 2028 but that strikes me as low.

Here’s why.

One of the key limiters historically has been inadequate testing resources, and long, unpredictable, unstable, and inconsistent treatment regime development.

AI, as we have been discussing for some time now, will dramatically speed up the way in which scientists diagnose, research, and treat this insidious disease.

I think the market may be double that.

Eli Lilly and Co is probably best in class for now but at $631.20 a share…

Hmmm.

Bottom Line

As much as 85% or more of all buy/sell decisions are wrong - meaning investors buy when they should be selling and sell when they should be buying.

Keep your emotions out of the equation!

As always, let’s MAKE it a great day – you got this!

Keith 😊