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☕ Two names poised for profits regardless of the Fed’s next move

Sep 16, 2024

Howdy! 👋

I trust you had a great weekend wherever this morning’s 5 with Fitz finds you.

The Dow’s just touched a new record, the S&P 500 is flat but sloppy. Meanwhile, the Nasdaq has turned red which, honestly, isn't that surprising given how leveraged big traders play the game.

Here’s my playbook.

1 – Two stocks poised for profits regardless of the Fed’s next move

I was honored to be invited back once again this morning to Varney & Co where the super smart Ashley Webster was sitting in for Stuart Varney.

Ashley wanted to know three things:

Is a rate cut baked in?

Two stocks that could be great buys at the moment

MyPOV on gold

Enjoy! (Watch)

2 – Concentrating on the Fed is a mistake

There are slew of central banks around the world meeting this week, nearly all of which are expected to cut. (Read)

Most investors are focused on will the Fed cut, by how much and when.

That’s a mistake.

The bigger picture and the one that we want to be thinking about is that we are on the cusp of an extended worldwide rate cut cycle, albeit one that is NOT predicated on a recession. That makes it both a) unusual and b) potentially very powerful.

It also potentially ushers in some significant volatility, particularly this month as we head into what’s called “Triple Witching” - the simultaneous expiration of stock options, stock index futures, and stock index options contracts, all on the same trading day.

Why?

Because triple witching is typically accompanied by more volatility, higher trading volumes and increased uncertainty.

Get your “buy list” ready now, ahead of time!

To a point I make frequently, chaos creates opportunity.

Besides, there's still an outside chance that Powell does nothing, as noted in last night’s market moment from the garden. (Watch)

3 – Is the shine off Apple?

Shares are down a few percent this morning after analyst Ming-Chi Kuo suggested that demand for the new iPhone 16 is lower than expected. (Read)

I wouldn’t bet on it.

We’ve seen this play so many times we’ve got the lines memorized.

The bears come out of hibernation every time there’s a new release and investors who fall for their hijinks tend to be bear bait.

You know what to do and I’ll be here if you’d like some help.

4 – Bad optics at a bad time for Boeing’s new CEO

Newly seated Boeing CEO Kelly Ortberg has worked very hard to portray himself as a man with a plan and somebody the rank and file can depend on.

Then news broke this weekend that he just closed on a $4.1M mansion in Seattle. (Read)

Talk about bad optics!

The company was already on edge, but the strike and more bad news could result in a double-digit sales decline at a time when most are betting on single digits. That would, in turn, force a bottom-line drop bringing revenue per share down considerably. (Read)

Boeing can’t profit if planes can’t be produced.

The stock hasn’t quite taken out $150 yet but if it does, $125 a share, then $100.

Putskies, short or simply avoid like the plague.

Keith’s Investing Tip: Many investors think they’re being smart by betting on turnarounds – and some actually are - but Boeing is not a company with anything “working” at the moment which means a turnaround is pure speculation. History shows it’s better to wait until there’s a few good news items on the back burner before starting to wade in.

5 – Charter rolls out new pricing but that ship sailed a long time ago

Charter Communicatons is rolling out new pricing and customer service changes intended to prove its commitment to reliability and credibility – two values CEO Chris Winfrey says he wants front and center. (Read)

Good luck with that.

Charter is an old-school cable provider tied largely residential internet services and subscribers. The company’s mobile business is growing but with a drop in the bucket compared with Verizon.

The world is going mobile.