Should you buy the dip?

Good morning!

‍Earnings season gets underway in earnest this week. By all accounts, it could be one of the wildest in a generation.

All is NOT lost, though.

Here’s my playbook:

Should I buy the dip?

History says yes, but to a point I made this morning with the fantastic Stuart Varney who asked me just that … carefully. (Watch)

Quality names only - there is NO rush!

Dogma isn’t an investing strategy

History says buy the dip. Albeit carefully, but unquestionably, yes.

People often challenge me on this as you can imagine. Usually it's because they want to prove to me that I’m wrong or that things will be different this time. They might, but dogma isn’t an investing strategy last time I checked.

What really makes money for investors over time – you and me – is buying the very best companies we can find. A term I define as those making “must have” products and services we can’t live without, rock-solid growth and, when possible, regular dividends.

For instance, including dividends and reinvestment, Chevron has returned 100.2% over the past decade. Pfizer has quietly rewarded investors with 164.6%. Apple has returned 619.3%! And that’s after all the selling this year – think about it!

Obviously, I cannot advise you individually so let’s get that off the table. It’s your money and your responsibility!

The point I want to make is that the media has made recent selling out worse than it actually is, especially if you understand the broader context history provides. Besides, if you can afford to sit out that kind of growth over time, my hat’s off to you. I don’t know of too many investors who can.

Helicopter Ben Bernanke wins Nobel Prize

Former Fed Chair Ben Bernanke wins the Nobel Prize for his work on crises including the role of big banks in the economy, particularly during the financial crisis. (Read)

That’s rich considering all the ___t we’re dealing with now is a direct result of his legacy.

It’s also an insult to everyone struggling with inflation, worried about their investments and putting food on the table.

New rules for Chinese chip stocks

What’s happening. The US has finally decided to implement still more serious export controls intended to limit Beijing’s ability to produce advanced military systems. (Read)

Why. US has finally woken up to the fact that Beijing is using our most advanced chip-making tech to produce weapons systems that are used against us.

If there’s ever an argument to buy back into US chip makers, this is it.

St. Louis to sue over rampant car thefts

This is a headscratcher. St. Louis is preparing to sue Hyundai and Kia over rampant car thefts. The city says a defect makes ‘em easier to steal.

Blame the cars. Missouri AG, Eric Schmitt summed it up aptly in August when he first learned of the looming lawsuit. "St. Louis has a violent crime problem. What’s causing crime in the city? The Mayor’s war against the police? The prosecutor letting criminals run wild? Evidently, city ‘leaders’ think it’s ... the cars. Yes—car manufacturers are to blame not criminals. You can’t make this stuff up.”

Sadly, this sets up a run in gun stocks ahead of the elections. I will be sharing a few ideas in One Bar Ahead® later this morning. Upgrade to paid

Bottom Line

Buying great stocks is a lot like climbing. You don't summit for the helluvit.

You climb to enjoy the view and the experience you'll remember for the rest of your life.

Let’s MAKE it a great week!

Keith