☕️ Palantir, I expect nothing less

Howdy 👋 

And just like that. 

Good news is actually good news again. 

US Payrolls jumped by 139,000 (more than expected) while unemployment came in at 4.2%.  

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

The S&P 500 just nudged 6,000 which, to my way of thinking, goes a long way towards the 6,500 – 6,600 targets I see as possible finishing points this year. 

Investing is about focus, not noise! 

So be focused! 

This isn’t rocket science. 😀 

Here’s my playbook.

1 – Trump v Musk 

I don’t want to spend a lot of time on this because: 

1. There’s no reason to; and, 
2. I think that they’ll make up one way or another 

You know what to do, I hope. 

The Tesla selloff is totally overdone. 

OBAers… please keep an eye on your email for today’s AMAs because I’ll be addressing this in considerably more detail.  

Keith’s Investing Tip: Wannabes often focus on who’s right while the world’s most successful investors focus on being profitable… often and even when they’re wrong. 

2 – Palantir, I expect nothing less 

This pretty much sums it up. (Watch) 

3 – And batting 3 for 3 this morning… Trump & Xi 

Both leaders plan to talk again and, importantly, agreed to resume U.S.–China trade talks. (Read) 

To a point I made yesterday and when the whole tariff tantrum started… money always focuses on who’s knocking, not just who answers. 

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

You know where to find me if you’d like some help sorting out the best names, why you want to own ‘em and a strategy that’ll carry you through the noise like a hot knife cuts through butter. 

4 – Layoffs up, but that’s NOT the real story 

News sources report that corporate layoffs are accelerating — and fast. (Read) 

• Procter & Gamble is axing 7,000 jobs, or 15% of non-manufacturing staff 

• Citigroup is laying off 3,500 in China as part of a global 20,000-job reduction 

• Microsoft trimmed 6,000 roles across teams and geographies 

• Walmart slashed 1,500 jobs across tech, ops, and advertising 

• Disney, Chegg, Klarna, Amazon, and CrowdStrike also made cuts 

Companies are blaming everything from tariffs and trade tensions to AI-driven restructuring.  

The natural inclination is to think this is bad – and for those who are laid off, that’s undoubtedly the case. My heart is heavy for anybody in that spot this morning. 

From an investing standpoint, this is GREAT. 

Let me explain. 

As we have been talking about for months, the real story isn’t cost-cutting per se, but recalibration. 

America and, indeed the world, is entering a new era where efficiency matters more than expansion… which, by the way, will come next. 

From an investing standpoint: 

• Avoid overexposed staffing-dependent business models 

• Watch for margin expansion plays — fewer humans, higher profits 

• Stay alert to AI-driven enablers — the companies building the tools everyone else now needs 

Pay very careful attention to what I call “Return to Scale” because what’s happening will throw value investors even farther for a loop than many already are. 

I wrote about that in great detail in the December and January issues of One Bar Ahead® so if you’re a newly minted, card carrying OBAer, please log in to the portal and spend a few minutes reading both.  

And if you’re not an OBAer, you’ll just have to take my word for it… or join the One Bar Ahead® Family. I’d love to welcome you on board as would every OBAer who’s already on the journey ahead of you…some for 25 years or more, btw. 

5 – Broadcom turns in a double beat 

Broadcom reported earnings, beating both top and bottom-line estimates (Read): 

• Revenue came in at ~$15 billion, a 20% YoY increase 

• GAAP net income came in at just under $5 billion 

• Guidance was raised for Q3 

Should you buy it? 

I don’t see any reason not to if it fits with your risk tolerance, objectives and circumstances (which I don’t know). Personally, I prefer a few other names because they’re a better fit… for me... but that’s neither here nor there. 

What I want to impress upon you is the same thing that stopped CNBC anchors Kelly Evans and Tyler Mathisen cold when I said it a few years ago, long before the thought had even remotely occurred to most folks, let alone the rest of Wall Street. 

AI will likely go down as the biggest investing theme in recorded human history.  

Every business on the planet will adapt, adopt or die.   

And the same is true for investors. 

Keith’s Investing Tip: Many investors wait for confirmation or simply because they’re scared of what could go wrong, which means they’re inevitably late to the proverbial party. Today’s markets are about getting there first and planning for what could go “right” – and there’s a lot of that, btw. 

Bottom Line 

Innovation has never failed to produce profits… ever. 

As always, let’s MAKE it a great day and finish the week strong.  

You got this – I promise! 

Keith 😀 

PS: The fabulous Suze Orman has very kindly invited me back to her podcast this Sunday. I hope you can join the conversation. My bride and I listen regularly so it’s a) an honour to be on again and b) something I encourage you to listen to too. 😀