☕️ Build your defense portfolio around this company

Howdy! 👋 

All three indices are firmly in the green as I type. 

Will it hold? 

Hard to say… a lot of today’s action is being driven by algorithms and rates. 

The former are playing catch up while the latter (driven primarily by the US 10YR) are down, so traders are doing what they do best… stacking on the leverage and piling in! 

You’re not alone if you’re thinking that it’s all a game and that we’re just along for the ride… it’s true. But – and I cannot emphasize this strongly enough - don’t let that faze you. 

The world’s most successful investors learn to live with Wall Street, even if we’re not on Wall Street! 

You got this! 

Here’s my playbook. 

1 - When peace breaks out, buy defense 

Defense contractors are pulling back on news of a potential truce between Israel and Iran. (Read) 

Not perfect, but it's progress. 

That said, I urge you not to make the mistake of confusing short-term headlines with long-term reality. 

Geopolitical risk is the new baseline. 

Demand for national defense and intelligence infrastructure isn’t going to go away—even if peace breaks out. If anything, it’ll continue to accelerate. 

War, terrorism, and ugliness are all growth industries, unfortunately. 

I’m going shopping. 

Starting with Palantir which, amazingly, is now trading at $141.67 as I type – and flirting with new all-time highs. 

I think it’s a perfect example of the kind of company around which you can build your defense portfolio. Not a defensive portfolio – that’s different – but a “defense” portfolio meaning companies capable of defending our country and our allies against bad actors. 

Speaking of which, I am often asked about when stocks like Palantir will “pull back” so that people who don’t yet own it can buy, and my response is always the same.  

Change up your tactics to control risk so you don’t miss out. It’s always better to focus on probabilities, not perfection and sure as heck not price. 

Keith’s Investing Tip: Waiting for the perfect moment usually means watching others make the money you could have. 

2 – JPow – Wait, I’m still here! 

Oh look, Jay “Totally Transitory” Powell has re-entered the chat. 

After torching credibility faster than a meme stock on margin, he’s now making the media rounds with the revelation of the century: the Fed has an obligation to prevent ongoing inflation. (Read) 

Gee, ya think?! 🤦‍♂️ 

This from the same guy who missed the inflation train before it left the station… then insisted it was just “passing through” … and finally, when it exploded into a full-blown wreck, pulled out the same tired tools hoping nobody noticed the smoke. 

To be fair, Congress was spending like blackout-drunk pirates at an open bar—but as my granddad used to say, “That’s why we have brakes on a truck, son.” 

Keith’s Investing Tip: Don’t bet on the Fed fixing anything. Bet instead on the companies they’ll be forced to follow. 

Trade idea: Think pricing power. Think margin monsters. Think about the names we discuss frequently. And, btw, if you'd like some help sorting out what's what and which to buy, I'll be here. 

The Fed chases. Leaders lead. 

3 - JPMorgan traders now say it's “time to get bulled up again,”  

Per CNBC. (Read) 

Where were they in early April 2025?  

Oh right… bearish. 

JPMorgan traders adopted a tactical bearish strategy in early April citing trade war escalation fears, warning that the US economy would crater due to the trade war's impact, raising the odds of a US and global recession to 60% up from 40% and perhaps most damningly cut its S&P 500 target from 6,500 to 5,200 with a worst case scenario at 4,000. 

Meanwhile, the S&P 500 is up roughly 8.4% since April 1st. (Give or take a basis point between friends.) 

Here’s the thing and yet again. 

If you’re reading the headlines, you’re already late to the party. 

The "trade" was weeks ago—when sentiment was sour, headlines were grim, and folks were panicking. 

Something, in fact, that I specifically noted on April 9th at the depths of the selloff when I said buying would be the move to make during an interview with the one and one Charles Payne. (Watch)  

I'm not telling you this to brag because that's not my style; I could easily have been wrong. 

What I want you want to understand is that the best buying opportunities are almost always accompanied by big money whining. 

Keith's Investing Tip: Waiting for headlines - aka permission to buy - from Wall Street analysts is an engraved invitation to miss out on profit potential.  

Trade Idea: Well, to be fair, this is more of a counter-trade idea but consider a few ATM S&P 500 putskies with the intention of holding ‘em no more than a few days. There are a lot of institutional traders who thought they were being smart by getting out last weekend, and they’re none too happy about having missed the run. I can easily envision ‘em engineering a sharp, quick downdraft (to buy in at better prices when they scare the weak money out). Nasdaq putskies, too. 

4 – Crypto: Big banks, bigger backers… still no buy button 

Crypto carries plenty of baggage but that’s neither here nor there. 

Digital Asset — a firm building blockchain infrastructure for banks — just raised $135 million from the likes of Goldman Sachs, BNP Paribas, and Citadel Securities. (Read) 

The goal is to accelerate adoption of the Canton Network, a system that lets institutions (like big banks) tokenize traditional assets like bonds and move them securely across regulated rails.  

We’ve talked about this before. 

It’s the kind of infrastructure that’s quietly reshaping the world’s financial plumbing. 

Can you buy Canton Network stock? 

Nope. 

There is, however, apparently a Canton Coin listed on several decentralized exchanges (including, for example, PancakeSwap V2) but not so-called “major exchanges” like Binance or Coinbase that I can find. 

Some sources show a token with a price of $0.06 and change and a market just shy of $700,000. CoinBrain lists a price of $0.000000000531 while TheBitTimes shows $0.00 with zero trading volume. Ergo, there’s a lack of reliable trading data and, heck, reliable data of any sort. 

Pass for now… but I’m watching the concept of digital clearing closely. 

Hopefully, you’ve got this covered as well for two reasons: a) because digital currency is inevitable and b) that means digital clearing has a shot at being very, very profitable for early investors. 

The OBA Family has been on board for quite some time with this concept and my fave choice has returned 138.26% since I brought it to the OBA Family’s attention versus 44.55% from the S&P 500 over the same time frame. 

Hopefully, you’re doing something similar! 

5 – Read this first if you’re tempted to invest in NY’s new nuke 

New York just announced plans to build its first new nuclear power plant in over 15 years — a sharp reversal from the Cuomo-era shutdowns. (Read) 

The facility will power up to 1 million homes and reflects a growing trend: states, tech giants, and now Washington are warming up to nuclear as AI-driven energy demand skyrockets. 

It sounds bullish on the surface — and it may be eventually — but let’s not get ahead of ourselves.  

Building new nuclear power in the U.S. will likely take decades, even with federal fast-tracking. And don’t even get me started on cost overruns.  

If you’re tempted to chase tomorrow’s shiny new toy, I get it and won’t blame you if you do. 

MyPOV is that you may get lucky, but you will almost certainly miss out on where the real cash flow is today: 

• Midstream transporters 

• Pipelines 

• Utility-grade natural gas players 

In other words, follow the energy, not the hype.  

Nukes may power our future, but the right names are already capable of powering your portfolio today, especially when it comes to dividends.  

As always, I’ve got a few ideas and would be happy to toss my hat in the ring if that’s helpful. (Learn more) 

Bottom Line 

You can build wealth or a portfolio of excuses. 

Your choice. 

As always, let’s MAKE it a great day. 

You got this – I promise! 

Keith 😀