My Final Warning to all Investors‼️
Summary
Jeremy warns investors about two dangerous extremes in the current market: the 'cash squad' who sit in money market funds losing purchasing power to inflation, and the 'leverage squad' who use high-interest margin and options. He emphasizes that historically, those who remained invested in high-quality companies like Walmart, Palantir, or Nvidia over the last three years have seen massive gains compared to those waiting for a 50% crash that may not come soon. Jeremy notes that the 2020s have already seen multiple crashes and corrections, and he believes the market will be significantly higher in 10 to 40 years.
Regarding the upcoming earnings season, Jeremy is specifically watching big tech and consumer staples. He expresses concern over the guidance for companies sensitive to energy prices, such as UPS and Coca-Cola, fearing margin compression. Conversely, he remains optimistic about the long-term prospects of major tech firms, provided they manage capital expenditures wisely. He advises viewers to focus on 'GVD' stocks—Growth, Value, and Dividend—to build wealth without the risk of going 'belly up' during inevitable bear markets.
Mentioned Stocks
Reasoning: Despite concerns over CapEx spending, Jeremy remains bullish due to a fair forward P/E of 22. He predicts the stock could hit $750-$800 with better spending guidance.
Reasoning: Jeremy predicts a price target of $22-$25 following strong earnings. He notes that everything in the $15-$16 range is a great entry point for long-term buyers.
Reasoning: Jeremy explicitly states he likes American Express more than Visa, calling it a premium business model available at a relative discount.
Reasoning: Similar to UPS, Jeremy fears that energy prices will negatively impact Coca-Cola's margins and EPS guidance this earnings season.
Reasoning: Jeremy calls Microsoft a buy, citing its attractive valuation and consistent ability to beat earnings. He views it as a high-quality tech play for long-term investors.
Reasoning: Jeremy mentions he has a smaller position and has actually sold a good amount of his Google shares recently as the stock has been running heavy.
Reasoning: Jeremy is concerned about UPS's upcoming guidance regarding margins and earnings per share, specifically due to rising energy prices.