☕️ Four undervalued stocks worth your attention
Aug 12, 2026Howdy! 👋
It’s a “risk on” day apparently.
If you’re not familiar with that expression, it means that traders have decided to put money into more speculative names which is why both the S&P 500 and Nasdaq are green and the Dow is in the red as I type.
Risk off days tend to produce the opposite… a green Dow and red S&P 500 and Nasdaq or at least a Dow that falls less if there’s more serious, broader selling.
Either way, there’s opportunity at hand.
That’s an important consideration for one simple reason we talk about regularly.
The world is reorganizing itself around themes and in ways that don’t respect Wall Street’s old categories.
Invest accordingly.
Here’s my playbook.
1 – What to do with the latest inflation data
The July CPI report landed this morning. Headline CPI rose 0.1% for the month, core CPI rose 0.2% – both right in line with what Wall Street expected.
Annual inflation sits at 3.4% but more importantly to Wall Street’s Fed watchers, that puts the so-called core inflation rate at 2.5%. (Read)
The number itself almost doesn't matter.
What you (and I) really want to know as investors is whether it signals the start of a real cooling trend or just one calm month sandwiched between two hot ones. And what the Fed’s likely to do in either way.
My own two cents is that a) the Fed’s data is badly broken and b) readings like this give the Fed more incentive to "wait and see” and “wait and see” and “wait and see” some more.
Funny enough, that’s great for investors – and I like that.
Now if only they’d take away the mic from various Fed officials who seem more intent on posturing for future career choices or book rights. Sigh. 🙄
Keith’s Investing Tip: Remember. Rates are for traders but investing in companies making must have products and services and selling ‘em at rates that exceed inflation are where you want to be spending your time, energy and – I submit – money.
2 – Four undervalued stocks worth your attention
I sat down with my good friend and colleague Scott “The Cow Guy” Shellady – so named for his colorful old-school cow-themed pit jackets – for a wide-ranging conversation about four undervalued stocks making the round lately: Microsoft, Nvidia, Palantir and SpaceX. (Watch)
Keith’s Investing Tip: There is always opportunity; the question is what you make of it and HOW.
3 – Waiting to buy SpaceX? Good luck with that 💯
I hear from investors around the world constantly who are worried they’re going to get in too early so they’re waiting for “confirmation” however you want to define that term. Particularly when it comes to companies like SpaceX for which there is no precedent.
Two thoughts come to mind if you’re one of ‘em.
First, you better get comfortable with missing out on a lot of profit potential. When I began my career, it was logical and appropriate to do that – wait for technical or fundamental confirmation - but these days the markets are like a rugby scrum in that you’ve got to be in it before the ball moves.
Second, always do what Wall Street does, not what it says. Case in point, the world’s largest sovereign wealth fund – Norway’s $2.3T monster – Government Pension Fund Global just disclosed a $1.2 billion dollar stake in SpaceX. That, btw, means that they’re significant investors in both of Unka Elon’s publicly traded companies… Tesla and SpaceX.
Engraved invitations rarely get better.
You know what to do.
And if ya don’t?
I’ll be here along with the OBA Family who regularly tell me that what they’ve learned has changed their lives, their confidence and their investment approach. Buy the best, ignore the rest!®
If you’re good and have your bases covered, great!
4 – The chart AI bubble babblers will probably hate
I hear from the AI bubble babblers regularly. So too from the CapEx Crusaders and the Spreadsheet gang which remains obsessed with valuations.
I respect ‘em one and all.
Here’s the thing.
If AI were a baseball game, we’re so early innings that the hotdog vendors aren’t even warmed up yet. 
Keith’s Investing Tip: Profit potential is directly correlated to the ability to change your mind when presented with accurate information that contradicts your perception and your beliefs.
5 – This 👇🙄👇
Love it or hate it, one of the great things about today’s markets is that bull---t tends to get called out quickly.
For example, and in one of the most glaring hypocritical reversals I’ve seen in a while…
This past June Bank of America was simultaneously a) forecasting three hawkish rate hikes and b) telling clients to prepare for the AI bubble to burst. Now they’re going to pump $250B into the very buildout they said was done for. (Read)
Riiiiiiiiight.
Think people.
The bank’s economists went into full hawk mode saying that inflation was “unambiguously worse” while BoA’s chief strategist Michael Hartnett said the AI trade was toast and warned against the AI apocalypse calling it the single greediest bubble in market history.
Now they’re going to spend a cool quarter trillion dollars on the exact thing they spent the month warning you about????!!!!
Stop treating research notes like the ones they issued with a straight face and start treating ‘em like slick marketing copy because that’s closer to what they are.
When an institution hedges their own calls by making a quarter-trillion-dollar bet in the other direction, you want to weigh the money. Not the memo.
Keith’s Investing Tip: I learned early on in my career that you NEVER take Wall Street at its word because dimes to dollars – the other side of the “house” is almost certainly taking the other side of any bet they’re running up the flagpole.
Independent research is almost always a better proposition, particularly if you can find someone who knows what they’re talking about, who has the experience to back that up and who is prone to eating their own cooking.
If that’s me and One Bar Ahead®, great. If not, no offense taken.
I’m good either way. 😀
Hope you are too – thanks for humoring me on my soapbox. 💯
Bottom Line
Play to win… or you won’t.
Just sayin’.
As always, let's MAKE it a great day! 💯
You got this — I promise.
Keith 😀
