☕ 3 stocks I hope I'm smart enough to buy more of, especially today

Good morning! 👋

All three indices are down once again in early going after the jobs market data came in far stronger than expected. 

Like that’s a surprise!?!?! 

Yields have been rising for a while because the markets a) don’t buy the Fed’s BS and b) the economy is stronger than people think.  

Both are a positive. 

Higher rates signal an economy resilient enough to withstand the risks AND harvest the opportunity associated with the growth that’s driving it. 

Strong, fundamentally sound companies don’t turn into bad investments just because rates edge higher. But they do turn into great bargains when nervous traders drive ‘em lower. 

I know what I’ll be doing today and hopefully you do too. 😀 

Here’s my playbook. 

1 – Three stocks I hope I'm smart enough to buy more of today 

I enjoyed a wonderful conversation with the super-smart Taylor Riggs yesterday who, as it turns out, was sitting in for Charles Payne. She asked me about Nvidia, quantum computing and what I am doing next as the quantum related fallout from Nvidia’s CEO Jensen Huang continues. (Watch) 

Short answer. 

Just as true today as it was before Huang let rip. 

Buy the best, ignore the rest. 💯 

2 – Our thoughts and prayers are with you LA 

I’ve spent many hours motorcycling, hiking and hanging out in the area that is now being turned into a smoking hole in the ground.  

My heart hurts. 

Please know if you can read this that our thoughts and prayers are with you as is the strength that the entire 5 with Fitz and One Bar Ahead® Family sends your way. 

T-Mobile and Starlink, btw, have teamed up to offer text messaging via satellite in the LA area even where cell service has been destroyed or degraded; I understand that’s already live. (Read) 

3 – Corporate bond market is hotter than ever, what it means for stocks 

This is another important reminder as to why we look beyond the short-term headlines that trip up so many investors. 

Companies issued $75 billion in investment-grade bonds in just the first 7 days - making it the busiest first week ever. (Read) 

Why the rush?  

Rising Treasury yields.  

Companies are locking in funding now to avoid higher borrowing costs later. This makes ‘em more resilient, helps stabilize profit margins and supports longer-term growth once short-term rate pressure eases… and it will. 

Remember how the game is played.  

Buy low, sell high.  

Rinse. 

Repeat. 

Keith’s Investing Tip: I speak with thousands of investors a year at conferences around the world and inevitably run into two groups of people: a) those who flinch, hesitate or otherwise chicken out when the going gets tough and b) those who wish later that they’d bought XYZ or PDQ when they had the chance and it was considerably cheaper.  

My point is that you may not like the selling and it may be scary, but you must do your best to come to terms with that being part of the journey.  

Take action or miss the chance. 

Btw and on a related note, I recommend a specialized corporate debt fund that’s nicely positioned for what’s happening. Its holdings are often considered a hedge against rising rates because of their floating-rate structure. And, not for nothing, rising corporate bond market activity usually creates greater demand for credit. 

Hopefully you’ve got something similar in your portfolio, particularly if you’re income-oriented and can stomach a little higher risk. The results could be well worth it. 🤔😃 

4 - TSMC posts record results 

TSMC’s Q4 beat the Street’s estimates. (Read) 

No scratch, that… clobbered ‘em with 34% YoY revenue growth, driven by a demand in chips for AI application. 

Should you buy it?  

It’s a great company and I wouldn’t hold it against you if you did or already have. 

Personally, I’ve got my mitts on a few other key chip makers because I think they’re a better choice for what I’m trying to accomplish but that’s just me. 

The thing I want you to think about is that AI chip sales, which accounted for 11% of the global chip market in 2024, could represent up to half of all semiconductor sales by 2027 according to Deloitte. 

AI isn’t just “a” tech like many think but perhaps the most significant technology in recorded human history. And companies like TSM will help drive that forward. 

5 – There’s still time 

The January issue of One Bar Ahead® will be out a few hours from now. 

It’s a big one. 

Some of what’s included…. 

• 2025 Annual Outlook 
• 3 Smart Fund Folio® moves to make right now 
• A new recommendation to increase your “tech tilt” but not your risk 
• Why the ‘5Ds’ matter more than ever 

OBAers, please keep an eye on your email! And, if you’re not part of the OBA Family but would like to be, I’d be honoured. There’s no pressure, of course, and never will be. (Learn More) 

Bottom Line 

People ask me about hot stocks frequently.  

That's the wrong question.  

Ask yourself which stocks will be there when you need 'em and work backwards.  

It's a very short list. 

You got this - I promise. 

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

Keith 😀