At The Margin Investing

ATMI

ATMI:  “At The Margin Investing”

I was out to dinner last night and a Morgan Stanley banker friend asked me excitedly, “Did you catch that rally today?”  I laughed and said NO.  I then mentioned how futures meandered lower at 9 AM after the ECI and PCE were already released for 30 mins and even $AAPL was only up 50c and traded over 1 million shares.  I could have put my entire net worth into Apple, levered 10 to 1 and an hour later made 80%.  After all, Apple has a modest valuation at 24x EPS and had a strong quarter and outlook, right?  Nope to both.  But you are just supposed to own Apple because it is a good company regardless of the price like Buffett and Peter Lynch espouse, right?  Ummm.  And where did the bear Mr. Wilson at Morgan Stanley “go right” by turning tactical bull for the 4Q after espousing 15x 2023 S&P 500 earnings of $200-210 or 3100 SPX roughly?  All good questions.  Below, let’s try and answer them for me and for you!  Also, subs, please do not forget to email us and sign up for our WhatsApp daily texts.