Happy Hump Day!

Don't Look this GIFT Horse in the Mouth 🎯👍🏼🤔

This is a buying opportunity. The bear camp has the consensus petrified that the economy is teetering on recession, which is why CNN's sentiment gauge is flashing "Extreme Fear."

Buffett (no, not Jimmy) once said, be greedy when others are fearful and fearful when others are greedy.

*Nothing here is financial advice. Always do your own due diligence and consult your advisors*

I can tell you that with the US economy's fundamentals still solid and big tech's earnings, specifically and the S&P's in general, still expected to be double-digits through the end of 2026 (and 2027, according to Goldman, due to AI's effects on the economy), this sharp sell-off is a glorious opportunity for long-term investors.

As the late great Charlie Munger said, "invert, always invert."

For example, hyper-growth Amazon is more than 50% undervalued after rallying 5% off the day's lows. It is trading at 12X cash flow while growing cash flows by 30% through 2029 and free cash flow by 646% in Q2.

And suppose you're not comfortable with growth stock valuations. In that case, you can buy extraordinary high-yield aristocrats like ENB or BTI at single-digit multiples, even after impressive rallies in recent weeks. JEPQ is a great fund to look at right now as well.

MORE “COWBELL” COMING:

In the meantime, Jerome Powell last week made it pretty clear there will likely be a Fed Funds rate cut in September. Markets are already pricing in 50 basis points. I think they are probably right.

• More liquidity is coming to support the economy which supports the stock market.

• The quarterly buyback blackout for most US companies is about to end and that will add buying pressure for stocks in the next several weeks.

The principles of smart long-term investing never change

It might be as simple for you as moving some of that cash, stable fund or bond fund in your 401k into the S&P 500 index choice, or another growth fund. 🤔

-Changa