Apple, Amazon, Microsoft and Google will fuel the next rally

newsofmax12/12/2022

4 6 minutes read

Apple, Amazon, Microsoft and Google will fuel the next rally

To ignite the fire – but not destroy the market by doing so. That’s the goal right now. It’s not as easy as in the famous short story Jack London (“Too Build a Fire”) where in the end the survivors are better off freezing to death in their sleep. At the beginning of this decade, we saw the rise of Robinhood (HOOD) and the distribution of investments from serious to ephemeral. Today, Robinhood is like a giant bonfire with young people’s money. The concept of gamification is real, and the investor exodus is loud — culminating in the ridiculous self-immolation of GameStop (GME), AMC Entertainment (AMC), and meme stocks. Opponents of this trend have abandoned Twitter, hired bodyguards and tried to hide from angry mobs that are trying to push the stock price higher by sabotaging sellers. No tincture from these clowns. Then there is a much bigger-than-expected rush for cryptocurrencies. The people who bought it somehow lured their brains into something they didn’t understand. As a result, they use too much of their brains and delegate the task to others who claim to know more than they do. You have to fight a bunch of loud, self-promotional scoundrels and their fintech allies in government and venture capital – all of these guys should be ashamed, but shame is not. evade them. They will not accept their intellectual disgrace and instead go on to argue that it is all about blockchain and DeFi (decentralized finance). They want to explain to you why they’re right and you’re wrong, even if they lose everything and you’re safe with your cash at JPMorgan. I wish I had an arrogance scale, something like a giant thermometer that could measure these arrogant promoters and trap them when they assume they’re smarter than you for believing. into something whose best use case is an untraceable ransom. But this era is coming to an end. It will, of course, be done with a fight as we see its representatives defending themselves with speculative arguments that sound so self-serving and so completely contrived that even those with heads Neutral minds are also repelled and revolted. The money furnace is Robinhood that burns gently compared to the napalm of cryptocurrency. Cryptocurrency protection interests cannot go away quietly as they will drain the coffers of their crypto banks and cause a wave of bankruptcies; The $34 billion that we know was destroyed by Sam Bankman-Fried – the disgraced former boss of failed crypto exchange FTX – nearly prop things up. We continue to be plagued by the alleged due diligence process carried out by so many people who should have known better, with only a few institutions recording their investments to zero, along with their explanation or omission. Here’s the problem: If it all goes away — the cryptocurrency and all the institutions that support it — the money left over won’t help push the stock price higher. It was once a magnet for several trillion dollars. Now I wonder if there is 400 billion dollars for the whole mansion. The whole thing reminds me of a line from the movie “Beau Geste”, when two of the main characters are attacked: “You’ll do better on your duty dead than alive.” The biggest guns are most likely being liquidated as they speak, liars. They will tell us how stupid we are not to believe in blockchain as if it somehow has nothing to do with lies and falsehoods. My view is: The Robinhood crypto scam and dollar boom didn’t generate enough money to prop up the stock. There’s not enough left in this pile of embers to do anything but marvel at how much it used to be and how little bankruptcy generated. No matter how many hearings there are, we will never know the full responsibility behind those in Congress and those on the Securities and Exchange Commission who opposed Chairman Gary Gensler. He specifically appeared on CNBC to warn us about virtual currencies and institutions that give you too much of a return for cash in the real bank. Self-service crypto players have criticized the SEC. They want to teach Gensler and let him know that he can only go so far before encountering all the well-funded entities and their secret paid supporters. Horrified! Horrified! So where will the money come from? Unlike the trillions of illusions that have disappeared in the thin crypto air, fuel will come from four stocks with a total of $6 trillion to donate: Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL) and Amazon (AMZN). There is simply too much money in these names to get us higher, or at least how high we can go after the next Federal Reserve meeting this week. But I think some of that investor’s money will go into the stocks of the companies with the most aggressive buyback programs. Those are the companies that don’t have enough stock to handle all the money that will flood in. Money in those four stocks will be cashed out, kicked, and yelled, until valuations become normal—better than Meta Platform (META) and like the S&P when they are revealed to be mortal. Not until then can the protest begin in earnest. Can these valuations take place? It’s happening as you read this. There is, of course, another enemy to momentum, and it’s a powerful one: The 4.5% yield on the 2-year Treasury note is extremely bountiful in a market where anything above 4 % in stocks are likely tied to the plunge in oil prices. However, we stick to oil, betting that they can sustain above-market prices as Russia cannot produce inexhaustible reserves and China becomes voracious when it reopens. I think we will win. We’ll keep Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL) and Amazon, even if we cut them higher. However, their spiral down to earth will be painful. If we don’t sell a few, the game will be late. But I suspect there will be more pain. Why take it? Because these companies still have value, although it won’t appear until the sale is complete and we don’t know when that will happen. It’s too dangerous to depart now, although Apple could see $120 and Microsoft drop 10 points. Amazon and Alphabet control their own destinies through headcount reductions. Good news? The selling could end after the Fed meeting. Bad news: If so, there won’t be enough rocket fuel. The big four companies need to drop at least a trillion dollars to power everything higher. I think it will happen in time. That means a brutal week until the transfer starts to happen. Hold on to what you have, but be ready for the stocks with the strongest buybacks. That’s where accumulation will matter most. (See here for a full list of stocks in the Jim Cramer Charitable Trust.) As a subscriber to CNBC’s Investment Club with Jim Cramer, you’ll receive trading alerts before Jim. conduct transaction. Jim waits 45 minutes after sending the trading notice before buying or selling shares in his charity’s portfolio. If Jim had talked about a stock on CNBC, he would have waited 72 hours after issuing a trading warning before taking a trade. INFORMATION ABOUT THE ABOVE INVESTMENT CLUB IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, PLUS OUR DISCLAIMER. NO Fiduciary Obligations OR OBLIGATIONS EXIST, OR BE CREATE, BECAUSE OF YOUR RECEIVING ANY INFORMATION PROVIDED IN RELATED TO THE INVESTMENT CLUB. NO SPECIFIC RESULTS OR PROFITS GUARANTEED.

Satya Nadella, chief executive officer of Microsoft Corp., during the company’s Ignite Spotlight event in Seoul, South Korea, on Tuesday, November 15, 2022. Nadella delivered a keynote speech at an event hosted by Korean unit of the organization company.

SeongJoonCho | Bloomberg | beautiful pictures

To ignite the fire – but not destroy the market by doing so.

That’s the goal right now. It’s not as easy as in the famous short story Jack London (“Too Build a Fire”) where in the end the survivors are better off freezing to death in their sleep.

At the beginning of this decade, we saw the rise of Robin Hood hero (HOOD) and the distribution of investments from serious to ephemeral. Today, Robinhood is like a giant bonfire with young people’s money. The concept of gamification is real, and the exodus of investors is loud — culminating in the ridiculous self-immolation of game stop (GME), Entertainment AMC (AMC) and meme stocks. Opponents of this trend have abandoned Twitter, hired bodyguards and tried to hide from angry mobs that are trying to push the stock price higher by sabotaging sellers. No tincture from these clowns.