☕ Back in rally mode, which stocks will lead the way imho

Howdy! 👋 

All three indices are green as I type, as a plan to end the longest US government shutdown on record begins moving through Congress. 

Like many, I’ll take it. 

However, I’m not exactly holding my breath either. 

As I noted in last night’s short, I think there could yet be some more shenanigans before the bears get banished for another run higher. It would be absolutely par for the curse – err, course – for somebody in Congress to throw a wrench at things before a deal gets inked last minute. 🤦‍ 

Patience and discipline are two of the most undervalued assets in today’s markets. 

And, at the same time, potentially a source of HUGE profit potential for everyone who understands what I just said. 😀 

Here’s my playbook. 

1 – Are we back in rally mode?  

I spoke with the super-smart Stuart Varney ahead of today’s bell who asked whether we’re back in rally mode after a bout of super nasty selling. (Watch) 

Perhaps. 

Keith’s Investing Tip: The markets hate uncertainty, but they love clarity more — and we’re starting to get some again. History shows that’s almost always a very investable transition. 

Trading Idea: An ultra-short term, ultra speculative at the money Put or PUTs – a bet that prices decrease – on the SPX in case traders “fade” the current rally or Congress throws a spanner into things. Probably best to put on last hour. 

Hmmm. 🤔 

2 – Please don’t make this mistake because it could kill your portfolio 

99% of all investors don’t even realize that they’re making it. 

What is “it?” 

One of the biggest portfolio killers of all. 

I am often asked for the “hottest” stocks, particularly when there’s a big, nasty, super-scary decline like there was last week. 

Wrong question. 

What you want to do is ask yourself which stocks’ll be there when you need ‘em... and buy accordingly. Especially if they’ve been hit hard in the latest selloff du jour. (Watch) 

3 – Buying more Palantir  

I said on air last week that I’d be hesitant to buy Palantir ahead of earnings but would instead buy it afterwards because I expected it to fall.  

That happened. 

So, I did. 

And not for nothing, I hope YOU did too. 

Palantir is not a company in trouble.

• Palantir is projecting revenue of $4.396 - $4.400 billion full year 
• Free cash flow may hit $1.9 - #2.1 billion 
• Total contract value hit a record of $2.76 billion, a 151% year over year jump 

The Michael Burry situation is very unfortunate but something that’ll pass. 

Stay focused. 

$200 again, then and once that holds, 3-5X over next 3-5 years. 

You know what to do. 

Keith’s Investing Tip: Fear is loud, patience is quiet. That’s why the biggest winners are almost inevitably those who treat volatility like a sale rack at your favorite store. 

4 – Another Costco split on the horizon? 

Costco’s been split-resistant for nearly 25 years, focusing instead on steady dividends that keep both members and shareholders loyal. Even so, and with the stock up nearly 2,800% since its last split in 2000, I can’t help but wonder if the stock will split within the next 12 months. 

At around a 50x P/E, Costco still looks solid — roughly 20% upside to the average target near $1,088. My target is a bit higher, of course, but that’s a topic for another time. 

What catches my attention is that sales momentum is accelerating around 15%, margins are expanding, and membership loyalty remains world-class. Add in growing international operations, private labels, and a smart push into AI and online sales. 

It’s hard not to smile. 

Costco has returned 117% since I first brought it to the OBA Family’s attention, compared to 54% from the S&P 500 — a roughly 2.2x performance advantage. I think there’s still plenty of fuel in the tank so to speak. 

If you’re not enjoying performance like that, btw, and that kind of profit potential sounds appealing, you may enjoy being an OBAer. Folks tell me it’s given ‘em unprecedented confidence and helped ‘em be successful in the markets. Many for the first time in their lives, something I find incredibly humbling. 

Keith’s Investing Tip: People want to make investing complicated, but it’s not rocket science.  And neither is life-changing profit potential imho. 

I’ll be here if you need me. And a tip o’the hat in your direction if you’ve got this covered! 💯 

5 – The greatest financial lesson of life 

Imagine you’ve got a great job, you own a home, a car, and things are going along smoothly. 

Then, whammo… life happens. 

• What do you do? 
• How do you think about it? 
• Which step can you take right now to get through unscathed? 
• And what can you learn from the experience? 

The venerable Suze Orman has a few answers which is why I encourage you to spend a few moments today listening to her latest episode of the award-winning Women & Money podcast. 

My bride and I are huge fans and have learned a ton over the years! 

Still do, in fact. 

This weekend she tackled one of the single most important issues of all… how do you plan for and get through the “what if’s” in life? 

I don’t think that gets talked about nearly as often as it should, which is why, of course, so many people wind up getting pinched when they least expect it. 

Suze encourages you to flip that around. 

I agree. 

Plan for the “what if’s” first… then everything falls into place AND you can get right through many of life’s unexpected challenges. To quote Suze, “there is not an excuse strong enough to keep you from being who you are meant to be.” 

While we’re at it and speaking of which… 

Suze very graciously asked yours truly back in this episode for a discussion on what the heck happened to Palantir last week. Hint, it’s not what everybody thinks, or the headlines would have you believe. 

Turns out that what’s happening behind the scenes is far more important (and understandable) than you’d think. 😀 (Listen) 

Bottom Line 

The markets are great at making you uncomfortable in the short-term if you’re in ‘em, and the best in the world at making you uncomfortable longer-term if you’re not. 

You got this – I promise. 

As always, let’s MAKE it a great day and start the week strong! 

Keith 😀