☕ Earnings: One to buy, one to sell and a new fund that starts trading Thursday

Howdy! 👋   

It’s a holiday shortened week and all three indices are in the green as I type. 

I’ll take it. 

Once again, history shows very clearly that being invested in markets that may not be perfect beats waiting to invest in perfect markets.  

Here’s my playbook. 

1 – What’s next? Here’s a thought that’ll throw many for a loop 

Here’s a thought that’ll throw scores of investors for a loop and catch others off guard, none more so than the spreadsheet gang. 

The S&P 500 is up 9% YTD but 12-month EPS estimates have risen 14%. 

Translation? 

Stocks are less expensive than they were at the start of the year!!! 

The naysayers are, of course, having a meltdown.  

Let ‘em.  

That’s always the case. 

Yet, the world’s best companies – meaning those that make “must have” products and services continue to print money as do many of the investors who own ‘em – including, I hope, you if you’re reading along.  

2 – One to buy, one to sell and a new fund that starts trading Thursday 

The ever-brilliant Stuart Varney asked me for my take on what the first thing Warsh should do as the new Fed chair. 

My answer might surprise you as good ol’ common sense, but hey, sometimes that’s what ya need imho.  

Also, two hot stocks reporting this week – one is a walk away while the other is a great pullback candidate. And rumor has it there’s a new ETF that starts trading this Thursday, less than 48 hours from now. 😀 (Watch) 

3 – Warsh between a rock and a hard place 

Kevin Warsh was sworn in as Fed Chair on Friday.  

Meanwhile, Jerome “It’s Transitory” Powell continues to hang out in the back hallway. 

Here’s the rub. 

Markets don't move on who walks into the Fed but they very definitely DO move when traders reprice the risk that comes with an unknown personality at the controls.  

And that repricing doesn't show up in your stock portfolio first — it shows up in Treasury yields. Which is exactly where most investors aren't looking. 

Yields control the cost of leverage in today's markets. Leverage gets amplified by passive investing, options, and single-stock futures. That's the transmission mechanism.  

Put another way, stocks are the last place the impact lands — but they're the first place people panic. 

Warsh's first FOMC meeting is June 16–17…. 🧐 

Meanwhile, I’ll be watching yields very carefully. 

You? 

Keith's Investing Tip: Invest in companies making "must have" products and services so dominant, so profitable, and so essential that it doesn't matter what the Fed does next. That's a short list — and it's the right list. Buy the best, ignore the rest®. 

If you are tired of second-guessing the markets and your investing, I’ll be here and I might have some perspective that helps. 

4 – Ferrari just “pulled a Jaguar” 🤦‍ 

Ferrari has just unveiled its first fully electric car, called The Luce.  

I did a double take. 

It’s designed by Jony Ive – yes, the Apple guy – so in a way we probably have a good idea what Apple’s EV would have looked like. 

Not surprisingly, shares of Ferrari have fallen ~6% before the ink was even dry on the press release.  

I've got to imagine Enzo Ferrari is rolling over in his grave, but that’s just me. 

Jaguar 2.0. 🤦‍ 

5 – Real Estate: this could change everything 

Wells Fargo just agreed to write mortgages on 3D printed homes. 

Read that again. 

One of America's biggest banks just told the market — officially, on the record — that houses built by a giant printer are real assets worth financing.  

Icon builds those houses. Their printer essentially replaces an entire construction crew. Faster, cheaper and less dependent on labor that's increasingly hard to find and afford. 

In fact, Lennar — one of America's biggest homebuilders — already has skin in the game.  

The company’s venture arm invested in Icon directly, and they built the first 3D printed community in Texas.  

A bigger one is already underway which is wonderful considering how fast the first one sold out and how many millions of homes America needs. 

Now they're selling the printer itself — the new Titan model, capable of multi-story buildings — to developers for $899,000. Wells Fargo will apparently finance that too. Orders are already running at twice their internal targets if what I have heard is correct. 

It might be time to buy homebuilders like Lennar despite the real estate crisis. 

Bottom Line 

Learn to think like a hunter, not the hunted.   

Your portfolio will thank you. 

Now let's MAKE it a great day – you got this! 

Keith 😀