☕️ If you’re not buying one or both of these companies, you’re kidding yourself
Aug 07, 2026Howdy! 👋
Traders are on their way to an all-you-can-eat buffet today.
Why?
Because of something we talk about a lot.
WWTFD… as in what will the Fed do.
The supposition is that the weak jobs report will give Team Warsh the impetus to drop rates or at least make it harder to raise ‘em. If ya missed it, payrolls fell by 23,000 when economists expected a net gain of 83,000. (Read) So Wall Street’s go-fast crew is borrowing money this morning and, on the gas, as I type.
Leverage, in case you’re just joining the 5 with Fitz, is how they amplify their efforts.
Anyhooo…. This shouldn’t be a surprise.
The old joke is that weather forecasters are the only job that make economists look good, but I digress.
The important thing – once again – to think about is finding great companies making “must have” products and services that are not dependent on the Fed, not dependent on Wall Street’s hijinks and not dependent on who’s in the White House.
It’s a short but VERY strong list imho.
Remember the big picture, even if there’s a selloff into the weekend later today.
Buy the best, ignore the rest!®
Speaking of which, here’s my playbook.
1 – Diversification is increasingly investing’s most expensive mistake
My ongoing research over the past 4+ decades shows one thing clearly.
Diversification is investing’s trustiest rule, but I believe that it’s increasingly going to be viewed as its most expensive mistake, even though it’s accepted as gospel and taught as dogma.
The fabulous Kristen Scholer asked me about this very thing earlier this morning during a chat about which stocks and sectors I think represent super compelling choices at the moment. (Watch)
2 – American AI v. Chinese AI: don’t say I didn’t warn you
Last week I told you about the Hugging Face mess — that American AI wouldn't defend itself the way Chinese AI did. And how four companies quietly started building an alternative. (See #5)
This week, the CEO of Hugging Face went on CNBC and said the quiet part out loud and, in doing so, echoing remarks you have heard from me many times.
China's not just competing anymore. In fact, he said flat out he wouldn't be surprised if they lead the frontier by next year. (Read)
Hmmm. 🧐
The US still owns the race for everything — the chips, the capital, the talent, and yes, the smartest models on the planet, but China’s increasingly winning the race for everywhere — open-source, cheap, self-hosted, and spreading fast through countries that can't afford or access the good stuff.
Here’s what concerns me more than the headline, though. China's catching up because we cut off their chips, not despite it. Scarcity made them scrappy and scrappy is starting to win.
Trade Idea: Cybersecurity in ALL its guises but starting at the very top of the proverbial food chain. Followed by data center construction companies which, unfortunately, are not centralized enough to make any specific choice worth noting… today. But, I’ve got my eyes on a few possibilities in addition to the one Chinese company I think is at the top of the food chain in this department for a variety of reasons.
Keith's Investing Tip: Stop asking who's "winning." That's not the question that makes you money. Start asking who profits either way. That's still names like Nvidia, Microsoft, and Palantir. And the Chinese outfit I’ve just alluded to that’s a long-time OBA fave.
3 – Finally, a court agrees with me on Meta
New Mexico judge Bryan Biedscheid has ordered Meta to pay an additional $567 million, which brings the tab El Zucko and his bunch owe to nearly $942M. (Read)
Why?
He said point blank what I’ve been saying for years.
Meta is a public nuisance.
Team Zuck disagrees, naturally, and Meta issued a statement to Fox Business that would be laughable if it weren’t so tone deaf... "We work hard to keep people safe on our platforms and have been transparent about the challenges of identifying and removing bad actors and harmful content." (Read)
Right and I have a bridge to sell you.
Meta’s own internal documents show that the company may generate 10% of its revenues from exactly that kind of activity… some $16 billion in all.
My counsel and I have repeatedly asked Meta to take down groups of imposters who are stealing everything from my likeness to my research, trademarked usage, copyrighted materials and who are using that information to dupe unsuspecting investors into thinking they are dealing with me. They’re even kiting pictures of our dog!
Yet, Meta won’t take that down… even though that activity is a) illegal and b) expressly prohibited by their own standards and policies.
I can imagine some dark humor internally every time the company dodges a bullet that would put normal people like you and me behind bars… “Zucked again.”
And Mark, if by some strange chance you are reading this, I’d love to have a conversation because I have some ideas as to how you might fix this and, in doing so, gain the public’s trust. 💯
Sadly, Wall Street won’t care and the stock will probably hit $1,000 by the end of the decade. So there is that. 🤷🏻
4 – The biggest, most valuable building on Earth is about to be a chip factory
Forget data centers for a minute.
Tesla and SpaceX (and xAI) have just confirmed that they are building Terafab, a joint chip factory.
The scale is simply jaw-dropping.
Tip o’the hat to Nic Cruz Patane btw.
Two thoughts come to mind:
- The chip shortage driving it is real, and both companies repeatedly said so themselves. Tesla and SpaceX flat out said their own future chip demand will outrun what the entire global chip industry can produce. That's a supply-chain story all by itself.
- This is one more brick in the wall for a Tesla-SpaceX merger. Musk has already told investors the overlap between the two companies keeps growing, and pointedly wouldn't shoot down merger talk on a recent earnings call.
Keith’s Investing Tip: If you’re not buying at least a little extra of one or both of these companies – SpaceX and/or Tesla, you’re kidding yourself… and very likely to miss some extraordinary profit potential, too.
5 – Issue Friday – hooyah!
If you’re part of the One Bar Ahead® Family you will know what the first Friday of the month means.... a packed new issue!
This month we’re starting our time together talking about one of my fave tactics for volatile markets like the present. People who know how to use LowBall Orders don’t sweat the drops like everybody else. Some even laugh all the way to the bank, too.
My bride is also back with Part 4 of her personal options journey – this time with real money on the line. I think you’ll find what she has to say interesting, particularly if you’re just starting out with options like she is.
The Portfolio Review is, of course, packed to the brim with fabulous new information. Research and schtuff that I believe you will find as eye-opening as I do. It’s clear as a bell to me that the biggest opportunities are still ahead.
There’s also a fascinator that I couldn’t be more excited to share. One that frankly, couldn’t be timelier.
We’ll close out time with a trade that even Wall Street can’t pull off, but YOU can.
A gentle reminder, though.
One Bar Ahead® isn't built for cherry-pickers, ticker tourists, or quick-buck artists. But if you're ready to step outside what the system is set up to sell you and be a real-honest-to-goodness investor, I'd love to welcome you to the family. 😀
People around the world tell me that what they’ve learned about investing in optimism has changed their lives in ways they couldn’t have fathomed before becoming a member… starting with the confidence to navigate today’s complicated markets.
Bottom Line
People have doubts about themselves, about the markets, about life.
That’s normal.
However, that’s also why you never want to let anybody or anything stop you… not in life and certainly not in the markets.
To paraphrase my dear friend and financial legend extraordinaire, Suze Orman… first people then money, then things.
I agree.
Financial decisions are stupid simple when your values are aligned in this precise sequence. Not to mention one heckuva lot more profitable over time, too.
As always, let's MAKE it a great day and finish the week strong! 💯
You got this — I promise.
Keith 😀
