Do you own enough of the right companies?

Good morning!

The markets are up in the early going which makes perfect sense as buyers get busy.

Not every company is on the move though, just the best.

That’s an important distinction and one we talk about all the time with good reason. Markets bottom when the public gives up and hedge funds bleed.

I say we’re close on both counts.

Here’s my playbook.

How to know when the markets will bottom

The markets are trying valiantly to make a stand and that means it’ll be time to bet on the upside again.

Probably sooner than people think.

Watch the Nasdaq. Traders will get on the gas with tech first and that’s your clue. And if you’re a member of the One Bar Ahead™ Family, please re-read yesterday’s Weekly Update because the technical indicator I shared with you will be your “go-signal.”

Can Peloton get its groove back?

Shares are up on news that the company is going to outsource all production to Rexon Industrial, a Taiwanese manufacturer with whom the company already has a relationship. The company is also reportedly suspending operations at Tonic Fitness, a company it acquired in 2019. (Read)

Sorry.

Still dead money. People want to get out and live their lives rather than shelling out thousands for sleek fitness gear.

PTON’s at $8.92 a share, not even worth shorting at this point.

Reminds me of GoPro which once traded at $86.97 and now perennially scrapes the bottom of the barrel at $5.46, a -93.7% loss that vaporized quick buck ticker hunters the world over.

Pepsi proves my point (again)

I made my case to Fox Business anchor Stuart Varney yesterday ahead of the opening bell that Pepsi would be one of the single most important earnings reports of the season. (Watch)

While most people think of Pepsi as a soft drink maker, many people are surprised to learn that the company actually derives nearly 50% of revenues from snack brands worth $1 billion or more each. And that, in turn, makes it a much more accurate barometer of consumer behaviour.

Pepsi proved my point, precisely!

The company handily beat Wall Street’s expectations while raising revenue projections. (Read) That tells me there’s another world-class player betting to the upside.

You know what to do.

Pepsi isn’t the only game in town

The One Bar Ahead™ Model Portfolio is chock full of great companies that are on average 30% less volatile than the broader markets, have a higher dividend yield and roughly 3X the profit potential. Perhaps more!

If you’ve got this covered, cool!

If you’d like to build wealth for life and want to be confident doing it practically no matter what the markets do next, give us a try. (Click here)

My mission is to help you build wealth for the rest of YOUR life!

All for one and one for all!

The Euro has been dropping steadily. So much so that it’s now within half a cent of parity with the US dollar (meaning 1 dollar=1 euro). That’s something we haven’t seen in 20 years.

Wall Street’s boffins are talking about a weaker dollar, but there’s a snowball’s chance in hell that’ll happen as long as the world is worried about a recession.

Two things come to mind.

1. For all the problems we have here, the US Dollar is still the best-looking horse in the proverbial glue factory.
2. That snappy 14-bedroom, 28-bathroom chateau you’ve always fancied could finally be within reach! Or at least at a 20% discount not seen in decades thanks to the falling Euro.

BTW - The property in the picture is Nuit-Saint-Georges, a 17th-century property complete with moats, world-class gardens, a chapel and orangery. Louis XIV stayed there in 1658 as did the Musketeers including d'Artagnan, at the personal invitation of the Marquis de Thianges. (See the listing)

You can have it for a cool 8.200.000 € EUR. Property taxes, though, are just $5,443 a year.

It is France after all.

Walmart goes “Canoo-ing”

The EV crowd is crowing this morning as Walmart steps with an order to buy 4,500 Canoo EV delivery vehicles. (Read)

Shares are up 20% in premarket but I’m not buying. There are other EV companies out there with a far more direct path to profits. And the cash flow/balance sheet needed to get there, pun absolutely intended.

Canoo’s vans are still visually cooler … at least to my eyes anyway. Then again, I’ve always been partial to Japanese Kei trucks which are undoubtedly an acquired taste!

Bottom Line

Risk management isn't about avoiding losses like most people think. It's about making the moves needed to stay IN the game and on the path to victory.

Big difference!

You know what to do.

Now and as is the case every day, let’s MAKE it a great one!

Keith