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☕ Time to get aggressive, especially with these three stocks

Dec 02, 2024

Good morning! 👋

The Snazzy Nazzy (Nasdaq) is on a tear today, led by both Tesla and Intel.

Not that this is a surprise mind you. (Watch)

Here’s my playbook.

1 - It’s time to “get aggressive”

The venerable Stuart Varney is no slouch. In fact, he’s a super-savvy London School graduate which is why I wasn’t at all taken aback when he asked me which stocks I’m most focused on. (Watch)

2 – How high can markets go?

I set a year-end target of 5,757.51 in January… that got taken out in October.

Then, I set a new year-end target of 6,000… which got taken out in November.

Now, I’m thinking 6,200+ by year-end might not be out of the question for 3 reasons:

There’s still plenty of money on the sidelines.
The FOMO crowd is just getting warmed up, having missed many of the great names I’ve repeatedly pointed out to the OBA Family, on TV and right here in the 5 with Fitz (so I sure as heck hope you’re not one of ‘em).
The institutional “chase” is on, meaning that many big fund managers came into this year negative on the markets and negative on tech specifically. They’re going to face some harsh questions from clients about why and how that happened. They’re also going to need to put those names into the portfolio by year end which tends to be a tailwind for everybody already on board.

Are there caveats?

Definitely.

Starting with a reversal from the Fed on rates, Russia and/or China taking things up a notch or some other truly Black Swan event as opposed to the Grey Swans that everybody’s already talking about.

Keith’s Investing Tip: I learned a long time ago that you want to stay focused on what you can control – like buying great companies, the tactics you use to control risk, the right portfolio structure and so on – rather than worrying about what you can’t. It’s not always easy, but it’s important.

3 – Intel, should you buy it?

CEO Pat Gelsinger has “retired” effective December 1st… so yesterday. Sent packing is probably more like it but I digress. (Read)

The stock is up 3.8% as I type.

Should you buy it?

Tough call if for no other reason than you can’t change corporate culture overnight.

Case in point, Intel’s CFO and Intel Products CEO David Zinsner and MJ Holthaus have been named interim co-CEOs. Designing a camel by committee comes to mind.

I could make the case for a flyer but that’s about it.

Not surprisingly, I prefer two considerably stronger names with none of the baggage that have returned 198.72% and 229.93% respectively over the past 12 months versus the S&P 500 which has turned in a super-respectable 31.42% over the same time frame.

OBAers, of course, know all about ‘em and will be receiving a new recommendation that’s intended to strengthen their lead this Friday when the December issue drops. If you have this covered, excellent… most investors do not. If you’d like to up your game, I’d be honoured to toss my hat in the ring. (Learn More)

4 - BRIC tariff threats

I’ve been warning about China’s designs on the dollar for more than a decade (after a particularly hair raising, completely-by-chance meeting in Shanghai).

Most Americans can’t be bothered by what’s happening “over there” thousands of miles from our shores which is an epic mistake. (Read)

China, Russia and a host of other companies known as the BRICs (Brazil, Russia, India, China and South Africa since 2011) have now been joined by nearly 35 countries interested in creating a common currency or at least a new digital payment standard to by-pass the USD.

The West has repeatedly and mistakenly played this down as “slim to none” when it comes to the possibility but make no mistake about it, the only thing the West has right is that they’ve perpetually underestimated China’s resolve here.

If China succeeds, the e-CNY will make the USD and Bitcoin look like chump change.

MyPOV: The vast majority of Americans have never travelled overseas, much less to mainland China so they have no idea what’s coming and how to deal with the Dragon. There’s nothing wrong with that if you’re one of ‘em, but please DO make the effort to understand what’s coming our way. And, of course, invest accordingly.

4.1 – Nissan on the brink

This isn’t being widely reported in the US but it’s an open secret in Japan. (Read)

Nissan made a big stink when it binned Carlos Ghosn for alleged financial mismanagement, not knowing how to run it, etc. Only now it’s the executives who led that charge who appear to not to know what they’re doing starting at the very top with CEO Makoto Uchida.

I wish I could say I’m surprised but I’m not.

Japanese executives, particularly senior executives, are their own worst enemy when it comes to breakthrough thinking.

5 – Get a jump on 2025!

A quick reminder for the OBA Family, be sure to watch the special presentation I published this past weekend. It’s available via the OBA Portal after you log in.

And if you’re not an OBAer?

No worries.

Every investor should begin thinking about 2025 immediately.

Why?

My research shows very clearly that investors who take proactive steps to identify and act on investment opportunities are more likely to succeed than those who wait and react to market movements for three reasons:

Taking action early allows you to find, identify and get your money ahead of opportunities before the broader market catches on, potentially leading to higher returns.
You can control risk better, less expensively and more dynamically ahead of time, rather than reacting to market volatility after the fact.
You will gain confidence – in many cases for the first time – by taking action based on a well-researched investment thesis that’ll help you stay the course during periods of market uncertainty when most everybody else gets scared out of stocks they desperately want to own.