• Third: Weak markets create great value in companies that trade down with the market despite their performance as a company. Think Apple — it is going to have an incredible fourth quarter with the iPhone 5, according to Changewave Research (part of the 451 Group), as I read the data a quarter far better than expected by most on Wall Street. And if you own Apple, you gotta sell calls if you want income. You can get 12% a year or more selling weekly or monthly calls on Apple.
• Fourth: Obama is going to approve the Keystone pipeline; this is going to be taken as a signal he is fracking-friendly, which he is. People are going to think gasoline prices may bounce a bit but are not going to go nuts given the increase in North American energy supplies. Stable gas plus baby boomers means RVs.
I like the maker of the best RVs in the world – Airstream (Aren’t they beautiful? – you have to visit their factory in Jackson Center, Ohio) — and Airstream is part of Thor Industries (NYSE:THO). Last time I wrote about Thor about a year or so ago and said take a look, the stock was under $20. Thor stock is now $43 and change. Well, think about it, I may know what I am talking about.
GOP at a crossroads
One last note — and this is not about investing, perhaps. I said I would get back to the possible future of the Republican Party. Here, I am. That party is at a crossroads. No pun intended; American Crossroads is the Super PAC run by Karl Rove that spent untold millions using tactics from previous elections to try to win the 2012 election and we know how that worked out for Romney.
If the Republican Party continues to be driven by seriously right-wing money, like that coming from American Crossroads, it is done. And I am serious – they are going to go the way of the Whig Party in the middle of the 19th century, a party soon replaced by, you guessed it, the Republican Party.
The Whigs looked backward and they wanted to maintain the status quo; they were anti-immigrant, anti the anti-slavery people if not pro-slavery; and anti- the organization and support of the frontier. Simply put, they stood in the way of ideas whose time had come and got run over. And when the Whigs broke up, their rump of a party evolved into the most appropriately named political party in U.S. history, the Know Nothings.