It’s time to party like it’s 1999!
Or at least that’s the message the market is sending. I remember the 1990s bull market. It was a sight to behold. And for a minute there, it seemed like everyone was getting rich.
It feels like that today too.
After a chaotic year that included customer boycotts and controversy around its CEO Elon Musk, Tesla (TSLA) stock just hit new highs for 2025… after a 30% jump in the past month alone…
Nvidia (NVDA) just made headlines by announcing a $100 billion investment in ChatGPT creator OpenAI…
Gold is hitting new all-time highs…
Even Argentine bank stocks are getting in on the action. The ADRs trading in the US jumped 20% yesterday on hopes that the US Treasury would backstop the sliding peso…
I could go on, but you get the point. The market is in full-blown euphoria mode. And it’s looking more and more like a bubble with each passing day.
We’ve seen this movie before, of course. This was the mentality during the late 1990s tech bubble. And more recently, we saw the same dynamic in 2021 during the pandemic “FOMO” rally.
We know how this ends. Market euphoria has a way of giving way to market panic and then eventually despair.
Of course, knowing how it ends is very different than knowing when.
You know our shtick here in Freeport Alpha. We follow the money. And right now, money flows into stocks are strong. That suggests that this euphoric rally still has a way to go before it finally exhausts itself.
So, we’re going to continue riding it higher. Our portfolio is on fire, and we have three positions up over 50%. But we’re also going to be diligent and protect ourselves by raising our stop losses. I’ll update you on those in a minute… and I’ll also give you sell instructions for one of our stocks that hit its stop.
But first, let’s get to the fun stuff. I’m recommending a new position that keeps our aging airline fleet in the sky.
New MoneyFlow Trade
Here’s a fun fact for you. The average age of a plane flown by American Airlines is over 14 years. (Based on the condition of the broken-down pieces of scrap I regularly fly from Lima to Miami, I would have assumed the average age was closer to 50 years old, but I may be dealing with a skewed sample….)
The average age of a United or Delta plane is even older, at 15.8 and 15.2 years. And remember, these are the averages. Roughly half the planes are going to be older than the average, and some of the oldest are pushing 30 years old.
It’s really no wonder that they’re all falling apart. Between being overused and just flat-out old, the fleets of the major airlines are in constant need of maintenance.