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☕️ Apple’s next interface? Your brain

May 13, 2025

Howdy 👋

The markets are mixed in early going.

Some of that’s simple profit-taking after yesterday’s monster updraft while still more is hedgers unwinding upside risk. That’s why you see the S&P 500 and Nasdaq continue to “green up” but the Dow - which is a reflection of risk - is red and under pressure as I type.

Good!

The markets are like a big meal in that any large move requires “digestion” which, in turn, means that price action like that we’re seeing this morning is a sign the markets are working normally.

Or at least as normally as they can considering the abnormal times we’re living through, but I digress. Which is probably also normal. I’ll let myself out now… 🤦‍

Anyhoooooo…. what happens next is key.

Millions of folks got caught flat-footed on the sidelines earlier this week - and, in fact, since April – which is why their greed glands will start working overtime when more deals are announced.

And that, in turn, sets up another big rally… probably several.

Here’s my playbook.

1 – China thinks it “won” at the negotiating table

Excellent – let ‘em. (Read)

Beijing operates by strategic deception and the ability to present what happened as a sign of inner strength is important to President Xi for the simple reason that he wants to retain power.

Contrary to what the Western media thinks about winning and losing, in China this is about who controls the story.

Traders and investors should pay close attention.

Optics like these have real ripple effects.

Which brings up a point we have talked about many times… invest because of China, not in China.

2 – Coinbase: From Crypto Curious to S&P Serious

Coinbase (COIN) is about to level up — joining the S&P 500 before May 19, kicking Discover to the curb after its Capital One buyout. (Read)

Let’s get real.

This isn’t a gold medal for Bitcoin like many will assume — it’s validation for the rails.

Coinbase’s inclusion isn’t about wild price swings or meme coin mania. It’s about the backbone of digital finance — the pipes, the clearing, the plumbing. The whole shebang.

That’s where the real money is.

While others chase the next token pump, I’ll be sticking with the real prize – digital clearing – and the bank that’s quietly nearly tripled the S&P over the past year. And so will the One Bar Ahead® Family.

Call me crazy but the real prize isn’t crypto — it’s the system that moves digital currency.

In other words, the picks and shovels.

Don’t get me wrong, I celebrate everyone who’s rocking and rolling with bitcoin and crypto in general. I simply prefer a better global business model, dividends, and the best C-suite money can buy… in this case, literally. It’s not perfect, but it works for me.

Keith’s Investing Tip: Investing isn’t a competition. It’s about YOUR goals, YOUR objectives and YOUR future. If you know what those are, get busy. If not, make a plan and get started. Today!

3 – United HealthCare: Paging Dr. Dumpster Fire

UnitedHealth (UNH) just pulled the ol’ “guidance? What guidance?” routine and — surprise! — the CEO bailed for “personal reasons.” (Read)

Translation: the house is on fire, and he didn’t feel like sticking around to smell the smoke. That or the board didn’t want him in the driver’s seat.

Former CEO Stephen Hemsley is strapping on the scrubs again, which tells you just how bad it is — they’ve officially broken the glass and pulled the "in case of emergency, resurrect leadership" lever.

Blame is falling on “unexpected medical costs” — mostly around Medicare Advantage.

Let’s not kid ourselves.

The company just missed earnings for the first time since 2008, slashed guidance, and is still under federal investigation for sketchy billing. That's not a bump in the road — that’s an on-ramp to Trouble Town.

I’ll be watching the circus from the parking lot. 🤔

Dividend chasers who saw this as a cozy corner of the market might want to run that thesis through a shredder. And if you think this is isolated, I’ve got a Medicare Advantage plan to sell you.

Keith’s Investing Tip: My experience is that when companies stop guiding in situations like this, they’re no longer leading — they’re hiding…. Something.

Trade Idea: Not surprisingly, putskies on UNH are heating up faster than a thermometer at urgent care. Wait for an “up” day when the recovery crew gets on board, then consider scooping up a few puts as premiums drop. I could make the case that this isn’t an isolated incident, so other medical insurance companies are probably ripe, too.

4 – Honda’s faceplant: you can’t innovate with a fax machine and failure

I have made no bones about the fact that I think Nissan and now Honda may not survive the decade as independents. If at all.

Honda just slammed the brakes with a 76% plunge in quarterly profit and now expects a 70% nosedive in full-year net income. That’s not a slowdown — that’s a faceplant. (Read)

The 25% U.S. auto tariff is chewing up margins faster than a Civic redlines, forcing Honda to shift hybrid production to Indiana.

Smart? Maybe.

Desperate? Definitely.

China and Southeast Asia aren’t buying, hybrid demand is surging only in North America, and Nissan just showed up with a 94% drop in profits and a $4.5B loss. Both are cutting costs like interns at a sushi bar.

The problem isn’t just tariffs — it’s talent.

Japanese auto execs are stuck in 1995, clueless about how to lead in a world that demands software, speed, and a Silicon Valley mindset.

This isn’t just about autos, though.

It’s a ginormous red “slam on the brakes” moment about what happens when outdated leadership collides with political whiplash and thin margins.

Carmakers remain a nasty investment — with very few exceptions. Know what you’re getting into… pun absolutely intended.

Btw, if you're holding global manufacturers – particularly Japanese companies - with overseas exposure, now’s a good time to reassess.

5 - Apple’s next interface? Your brain

Apple is reportedly working on allowing people to control their iPhones with neural signaling. (Read)

Team Cook is collaborating with Synchron, a pioneer in minimally invasive brain-computer interfaces (BCIs), to develop technology which involves brain implants to enable individuals to translate neural signals into actions.

A few things spring to mind here:

Apple’s ecosystem suddenly expands to include people with severe motor impairments
The medical pivot I’ve been speaking about for a while develops and Apple is yet closer still to having its tech medically certified (which means insurance starts paying for it).
It’s also a glimpse into the post-touchscreen future: no hands, no swipes, just thought-driven interaction. That’s not a gimmick — it’s the kind of tech moat Apple builds when it’s thinking 10 years ahead.
If Apple can securely capture and interpret neural signals, it’s not just building accessibility tools — it’s planting a flag in the future of human-machine interaction. That opens the door to entirely new services, hardware categories, and user experiences. The personalization potential is enormous — and you can bet Apple’s already thinking about how to monetize it.

This, btw, goes well beyond Apple!

Call me crazy but I can see a world in which you get into your Tesla, you mentally signal to your iPhone where you want to go... next thing you know an Optimus bot is placing groceries that it knew you wanted into the trunk of your car.

Now if I can only have a “mental” lawnmower!