The real digital currency move nobody but us sees coming

Good morning!

Inflation came in hotter than expected ... and right on cue, futures tanked.


This is not a surprise if you’ve been reading my research for any length of time whatsoever. And following along.


Here’s my playbook.

"Hotter than expected”

I laid out this exact scenario earlier this week during a discussion during an appearance with the fantastic Stuart Varney Monday morning ahead of the bell saying that it will be a Keynesian Beauty Contest. I also said inflation would get worse. (Watch)


Today’s selling is because they fear the Fed will use it to raise rates more aggressively rather than pausing or pivoting which has been the narrative in recent weeks. Traders could give a rat’s you know what about the number itself.


I’ve been encouraging you to hedge for months now using a combination of low-beta high dividend stocks and inverse funds to protect against the downside. The former are under pressure but, importantly, holding their own. The latter are appreciating markedly as the markets sell off yet again. SH, PSQ and DOG are up 28.95%, 43.29%, and 21.40% YTD.


If you’ve got this covered, cool! If not and you’d like a little help, I’d like to toss my hat in the ring. Upgrade to paid

The real digital currency move nobody but us sees coming

Delta Airlines and Starbucks have teamed up to create the ultimate caffeinated flier program. Launched yesterday, users can now spend money at Starbucks to earn Delta Miles and earn double stars on days when they’re flying Delta. (Read)


What everyone is missing. People understand airlines but are having trouble linking the two.


Here’s the skinny. Starbucks is already one of the world’s largest “banks” with their loyalty program, and mix/matching monopoly money across different companies is going to create interesting dynamics. Not to mention the possibility of a “reward-oriented” blockchain or some sort of shared token arrangement.


I’ve got a few ideas and I’ll be sharing ‘em in the weeks ahead.

Pepsi defies slowdown fears

Pepsi just posted slam-dunk earnings. One statement, in particular, stood out to me by CEO Laguarta: “Our brands are being stretched to higher price points and the consumers are following us.” In other words, people are still buying despite inflation. (Read)


Yep.  


I called out PEP specifically last Friday on CNBC during an interview with Tyler Mathison on Power Lunch. (Watch)  


It’s still a great buy, and with a 2.72% dividend growing at 7.52% a year over the past 5 years, I submit it's worth thinking about. Especially if the economy takes a header.

AAPL: Careful what you wish for

Apple is boosting employee benefits company wide except for those working at the single unionized shop. Apparently, they’re being told they have to negotiate for higher educational benefits, better health care and more under collective bargaining. (Read)


Talk about the Law of Unintended Consequences!

My former boss is going into space (again)

I’m super happy for Dennis Tito and his wife, Akiko. AP reports that they’re going to the moon on Elon Musk’s Starship. Tito made headlines as the world’s first space tourist in 2001 when he paid $20 million to visit the International Space Station. I was super fortunate to work for him in the mid-1980s at Wilshire Associates, the company he founded.


Investing Angle: Most people will look at this story and think to themselves so what, another rich guy going into space. They’re missing the point.  


The space industry will be a $1 trillion proposition by 2040 according to Citi. From 2010 to 2020 it expanded 70% to $424 million. Space Quarterly reported that space infrastructure companies received more than $14.5 billion in funding last year alone.


Naturally, the One Bar Ahead® Family is already “on board”.  


Are you?


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Bottom Line

Big down days stink but they are also where you can get great companies, cash flow and dividends at very low prices.


“To buy when others are despondently selling and to sell when others are avidly buying requires the greatest fortitude.”


--- Sir John Templeton


Now, let’s get out there and make it a GREAT day!


Keith