Straight to your inbox from Keith himself!

*Trusted by tens of thousands of savvy investors and traders around the world every day

☕ Tesla bears are likely making the mistake of their lives

Oct 21, 2024

Good morning!

It’s great to be back in the PNW after a whirlwind trip to Orlando for the MoneyShow. (Watch)

Thank you for attending – if you were there – and here’s to next time - if you weren’t!

All three indices are in the red this morning as I type in the early going. I encourage you not to make the mistake of thinking it’s “game over.”

We stand on the cusp of what I call the 6^th wave and what just may be the single biggest investing opportunity in recorded human history.

Folks who change their thinking, their methods and their approach will, odds are, do exceptionally well. Those that don’t will have a very different experience.

Here’s my playbook.

1 – Can stocks keep going up?

The data may surprise you.

The S&P 500 has put in 47 new highs this year.

Forty-seven.

This is the longest string of advances for both the Dow and S&P 500 YTD. It’s also the longest such streak since 1997 if memory serves.

Something else to think about.

The S&P 500 has now logged 6 consecutive “up” weeks.

CMT Ryan Detrick, who also picked up on this chart from Carson, notes that there have been 51 such times since 1950. And, that stocks were higher 86.3% of the time a year later with an average 11.1% gain.

My own research matches up.

And further, shows an average gain of 14.7% when the S&P 500 rises in 10 of the past 11 months which has only happened 10 times since 1950.

Keith’s Investing Tip: Investing in optimism beats cowering in pessimism yet again. Make sure you’re doing the former, not the latter.

2 – Tesla bears still have it wrong

The super-savvy Stuart Varney asked me for my take on two stocks making the rounds lately (Watch)

Tesla, which reports earnings this week and Boeing.

This is a teaching moment.

Wall Street analysts missed Windows, missed Amazon, missed the iPhone, missed Nvidia… because they’ve got to be spoon-fed. If they can’t “model” something in their spreadsheets or posh East River offices, they poo-hoo it.

They’re doing it again.

Wall Street fails to grasp the bigger implications associated with Tesla’s next move. Robotaxis, AI and robotics in particular.

Tesla has returned 1,321% over the past decade despite all the negativity and the nonsense brigade while the S&P 500 has turned in 265%. That’s enough to turn every $1,000 invested back then into $14,220 and $3,650 respectively.

Betting against Musk today is very much like betting against Jobs back in the day.

OBAers: I will have additional commentary as well as a quick trading idea for Tesla ahead of earnings in this week’s update. If you’re thinking along these lines, awesome. If not and you’d like to learn, I’ll be here.

3 – Why I won’t buy Boeing even if there is an agreement

Boeing is still a bug in search of a windshield; and, sadly, you can’t turn around incompetence in a quarter. (Watch)

Keith’s Investing Tip: Investing is not “all or nothing” like people think but, rather, a tradeoff. In this case, I’m not going to buy Boeing because I believe there is substantially more opportunity with other great stocks that we talk about frequently. Put another way, why invest for a 5% run higher when other choices could be 50% higher a few years from now. Make sense?

4 – Palantir is already ahead of the next jump in AI

The HLTH conference, focused on healthcare AI, has kicked off in Lost Wages – err, Las Vegas - with companies like Nvidia and Microsoft presenting AI tools to reduce administrative burdens in healthcare. (Read)

This is potentially a huge opening and a massive investable opportunity.

Healthcare, as we have talked about many times, has been slow to adopt new tech but now with the convergence of AI, medicine, and healthcare, that’ll accelerate.

Meanwhile, Palantir is the logical play here and, honestly, has been for a while. I could also make the argument that insurance companies and medical providers will see some significant margin expansion. (Read)

This is one thing happening “in Vegas” that won’t stay in Vegas.

5 – URGENT Fraud Alert

It came to my attention this past weekend that there are imposters using AI-generated direct messages, text, and even voice mail to solicit members of the Five with Fitz and One Bar Ahead® Families for “chainmarkets” – whatever schlock that is - crypto scams and more.

Please do two things immediately:

Block and report any such activity to the appropriate social network – Twitter, Instagram, your mobile carrier; and,
Report all such instances to your local law enforcement and/or the FBI’s Internet Crime Complaint Center.

I will NEVER solicit you via DM, text or voicemail for super-secret trading systems, sh!tcoins, forex trading, pornography or whatever crap du jour scammers are trying to peddle. Ever!

I am terribly sorry for the inconvenience. It is a shame that I must issue such a warning but that’s evidently the world we live in. 🤦