It’s funny when you run a portfolio and allocate money to a new pick. I’ve been sitting here thinking – well, we’re doing okay.We’re up 800 basis points on the S&P 500 this year.But then, I recall we started doing a monthly pick because my editor requested it. If we were only focused on the semi-annual core portfolio, we’d be up more than 24.5%.So, when we add a new pick tomorrow, it will water down the performance…But here’s my original seven… and we’ll have a new seven on July 1. Anyway, if you’re not familiar with how we select stocks, I’ll explain it later. But the most likely pick for Monday … is a foreign company.It produces … hands down … my favorite product in the world.Here’s a clue:

I’m not a key, but I unlock thoughts,
Not a sword, but battles I’ve fought.
In cafes and libraries, I silently sit,
Helping minds to share their wit.

If you figure out that riddle and are not a subscriber, I’ll give you a free month.But you have to actually name the product and its manufacturer.Let’s dive into the week ahead.Monday, June 3, 2024Event: The COMPUTEX Taiwan conference. This will feature speeches from Nvidia (NVDA) CEO Jensen Huang.Republic Speak: I won’t sit here and pretend that Nvidia is the problem. This stock is $1,100, and it’s cheaper than it was at $200. The reason is that its EPS has surged while its PE ratio has plummeted. But let’s at least try to point out the insanity, okay? The company’s market capitalization is higher than the entire German stock market.It’s higher than our entire energy sector here in the United States. What sort of future is the market predicting based on this stock price?Are we finally getting flying cars? Wait … is that it? Flying cars? Or is this hype just so that my cell phone gets more apps and the government can track me easier …Tuesday, June 4, 2024Event: Bath & Body Works (BBWI) earnings report.Republic Speak: When I was 17 and lazy, my go-to holiday gift was a stupid candle or body wash from this company.This morning I thought … How in the hell is Bath & Body Works still in business?Who goes there?We should study their customers through binoculars.Well … silly me.I looked at their balance sheet. What a company…F score of 8. Z score of 2.8. Their return on invested capital (ROIC) is 31%. This stock is also pure momentum; shares are up 18.5% over the last month.If they miss … and there’s an overreaction, I might invest in body wash. Their investor presentation is very impressive. This is a hidden gem in the market.Wednesday, June 5, 2024Event: The European Association for the Study of the Liver conference.Republic Speak: This is perhaps my favorite conference name ever … but it would also make for the name of an incredible Metal Band to open for Metallica in Spain this summer … The European Association for the Study of the Liver.I suppose I could have discussed how Campbell Soup (CPB) and Dollar Tree (DLTR) will report earnings… but it’s hard to top a one-day conference featuring Akero Therapeutics (AKRO), 89bio (ETNB), Madrigal Pharmaceuticals (MDGL), Novo Nordisk A/S (NVO), and Eli Lilly (LLY) under that banner.In college, I helped to design our fraternity rush T-shirts.My sophomore year, it was a picture of a sinking ship that said, “Jump aboard.” The following year, it was an image of Curious George passed out next to a bottle that said XXX on it. And my senior year, it was a shirt that said: “My liver is banking on a heart attack.”Remember that, my fraternity brothers … they’re the people running the world now. YMMY.Thursday, June 6, 2024Event: The European Central Bank expected to cut its interest rateRepublic Speak: I’m recommending a French company on Monday. It’s not just because it manufactures two of the most incredible products in the world. It’s also because a rate cut will benefit this stock over the next two years.Friday, June 7, 2024Event: Nvidia 10-1 stock split. May Jobs Report.Republic Speak: A 10-1 split only helps Nvidia. I wouldn’t be shocked to see the stock hit $175 post-split by the end of the year. But someone must help me make deeper sense of how Nvidia is worth more than the entire energy sector. I think I know why … and that answer is Jerome Powell. But this is a bit insane to me.The May Jobs report will be critical for speculation with the Fed. I’m banking on a surprise on the upside. Too many part-time jobs are being filled.Just a ReminderBen Bernanke and Janet Yellen broke the stock market. But so too did the European Central Bank in 2014. The money supply is driving scarce resources higher. Focus on the stocks buying back stock … in deflationary environments … with lots of cash flow. And then be ready for the trade of the decade when rates are cut (commodities). I remain long gold, silver, Bitcoin, and pipeline stocks. Stay Positive,Garrett BaldwinMore By This Author:The June Watch List
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