☕ Palantir and Nvidia just built an AI money printer

Howdy! 👋 

Headlines are decidedly nastier this morning, and, no surprise, stocks are down. 

Like that’s a surprise. 

If you are not investing while the chips are down, you will not be ahead of the game when they're up. 

And yes, it really is as simple as that.  

 Here’s my playbook.  

1 – SPR dumps 400M barrels, oil hits $100 anyway – here’s why 

The International Energy Agency (IEA) proposed and coordinated a record release of up to 400 million barrels from strategic reserves (with the U.S. contributing significantly via its Strategic Petroleum Reserve). (Read) 

Crude’s back at $100 anyway. 

Why? 

Because of something I mentioned on Fox Business with Maria and the President alluded to on March 3.  

Oil won’t start moving in meaningful amounts until somebody is willing to insure safe passage again. 

Chubb has stepped up and – so far – is the only player at the table. 

Should you buy the stock? 

Maybe. 

I think Chubb comes under pressure – meaning declines a skosh – because people are going to worry about insurance losses the way they worry about insurance stocks after a hurricane. 

However, and in the same breath, I expect that to be relatively short-lived the moment the White House announces some sort of backstop. Kinda like a Fed “put” if that makes sense or the Intel situation. 

Hmmm. 🤔 

Meanwhile, JPMorgan just stepped up saying to “buy energy stocks” until the Strait of Hormuz reopens. Nice to have validation considering I told you that point blank on Monday when it hit $100 and the fabulous Stuart Varney asked me about it.  

Keith’s Investing Tip: Keith’s Rule of the Back page strikes again. If you are waiting until everything is on the front page, you’re gonna be constantly late to the game. The most profitable stories tend to be found on the back page long beforehand. 

2 – Palantir + Nvidia = $$$ 

Team Karp just joined forces with Team Jensen. 

At the center of it is a sovereign AI operating system reference architecture built to help customers deploy secure, production-ready AI infrastructure at scale. (Read) 

Hooyah! 

It brings together two of the most important companies in AI. 

Btw and in case you’re keeping score… Palantir and Nvidia have returned ~500% and ~780% respectively since I brought ‘em to the OBA Family’s attention versus ~77% or ~61% from the S&P 500 over the same time frames.  

So much for the “yeah, but” crew. 

History suggests two things: a) that there are 10-15 Palantirs and Nvidias out there right now in various stages of maturity. And b) that the time to buy is now while “everybody” is looking the other way. I just laid out one of ‘em in the March Issue, in fact. 

If you have this covered, great. If not, you may find One Bar Ahead® helpful. 

3 – Stryker hit by pro-Iranian hack 

Stryker makes medical devices and it’s reporting that the company has experienced a “global network disruption” to its Microsoft suite following a cyber-attack that may have ties to a pro-Iranian group. (Read) 

If you consider yourself a serious investor and you are not investing in cyber defense stocks against today’s global backdrop, you are not a serious investor. 

Just sayin.’ 

4 – Gold: what’s next 

I’ve heard from countless investors with one thing on the brain over the past few months… Gold, gold, gold. 

I get it… the shiny stuff has had an amazing run higher. 

What’s next? 

Institutional traders are increasingly nervous about holding gold because they can’t model the volatility associated with it lately. And they don’t want to own what they can’t quantify. 

The next liquidity crunch – and I think there’s one coming – could see sellers get flushed and forced to sell into declining prices. 

You can talk all you want about the “macro” story, but market mechanics matter a whole lot more than most investors understand right now. 

Not for nothing and at the risk of committing financial heresy, if gold were really a hedge like many individual investors seem to think, it’d be screaming higher as the Gulf of Hormuz closed and the shooting accelerated. But it’s not because it’s all about the leverage. (As I mentioned to Ashley Webster recently). 

Do NOT get caught offsides! 

Keith’s Investing Tip: Any “safe haven” that can be forced lower by leverage and structural manipulation isn’t a safe haven… just a crowded trade. 

5 – Amazon throws rocks… from a glass rocket 🚀🤦‍♂️ 

Amazon fired off a 17-page complaint to the FCC claiming Elon Musk’s plan to put up to 1 million satellites in orbit as AI data centers is unrealistic and would take “centuries” to deploy.  (Read) 

Bold move. 

Because the FCC chairman basically replied: 

Maybe Amazon should worry less about SpaceX… and more about the fact that it’s about to miss its own satellite deployment targets by roughly 1,000 spacecraft. 

Translation? 

The kid who hasn’t finished his homework is complaining that the other kid’s science project is too ambitious. 

And for context? 

SpaceX has already launched 9,000+ Starlink satellites while Amazon’s Kuiper/Leo effort only has a few hundred in orbit so far.  

Space race… meet space reality. 

I know which company I want to own. 

You? 

Bottom Line 

“Conventional wisdom” is often the path to substandard results.  

Put another way, it makes no sense to apply the same tired old analysis everybody else is using yet expect different results. 🎯 

The sooner you learn to think differently, the sooner your portfolio can thank you.   

You got this – I promise! 

Now and as always, let’s MAKE it a great day. 

Keith 😀