When Elon Buys MSNBC

Late last year we began working with the awesome folks over at Paradigm Press. Over there we have helped launch another free daily newsletter - Truth & Trends. If you want to see even more of my (Enrique) writing for FREE, check out Truth & Trends.

Today we are sharing one of our articles from last week where we shared some potential “surprises” for 2025.

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Dear Reader,

Today, I’ll continue with a second set of “surprise” predictions for 2025.

Spoiler alert: This list includes a few detrimental events.

Most people don’t see any of what I’m about to say happening. But if they do, they could materially impact your portfolio.

To be clear, I’m not pessimistic about the year ahead or the overall market. But as traders, we must prepare for the downside.

I hope many of these predictions never come to fruition. Regardless, I always want you to be as prepared as possible.

So let’s dive in…

1: Elon Musk Buys a Legacy Media Company…or Two!

Remember that back in 2022, the rumor Elon Musk would buy Twitter started as a joke… on Twitter.

The idea had been initially sent to him in jest via a tweet back in 2017, and he responded with, “How much is it?”

Fast forward to the present, and media giant Comcast (CMCSA) announced it will spin off its cable assets, including the liberal-leaning news channel MSNBC.

Analysts expect the company to generate a ton of cash flow and be valued at $5 to $10 billion.

In November, Donald Trump Jr. reposted a story about the spin-off, and Musk responded. Here’s the back-and-forth…

Sound familiar?

Musk paid $44 billion for Twitter, and it’s losing a ton of money. So why not buy MSNBC and combine the two?

The new entity would have great synergies, likely be cash flow positive, and further amplify Musk’s media power.

Meanwhile, Warner Bros. Discovery (WBD), the owner of the news channel CNN, only has a market capitalization of $26 billion.

What’s to stop him from also buying that? We shall see…

2: Donald Trump Starts a Hot War, Defense Stocks Rip

One of the most fascinating aspects of Donald Trump is that he has a long track record of public statements dating back decades before he entered politics.

And it’s clear from his previous statements that he’s no pacifist!

While he has been critical of what he considers useless conflicts, he has not been shy about using force when he deems it necessary.

The art of negotiation is always more successful from a position of strength.

I think he will act out of aggression to establish that he is very serious about pushing back globally.

However, defense contractors like Lockheed Martin (LMT) have been crushed with cost-cutting concerns.

I think Trump's hot war, which could kick off as early as his first 60 days in office, could ignite a big bounce in these stocks.

3: There Will Be an Assassination Attempt on Elon Musk

Again, this list of surprise predictions includes a few adverse events. To be clear, I don’t wish harm on anybody.

But part of my job is to predict what could surprise the world and the markets.

Musk has been controversial and high profile for many years, but his active political involvement has taken him to an entirely new level.

Considering we saw two attempts on Trump’s life while he was (supposedly) being guarded by the Secret Service, I think this might be the most likely prediction on my list.

Musk also has 11 living children with three different partners. That’s a lot of ground to cover, so I think it’s just as likely that one of his children is involved in a kidnapping instead.

After the assassination of UnitedHealthcare CEO Brian Thompson, I think that we are going to see more terrorist events targeting corporate leaders.

Musk is a huge target.

If any of this happens, it could inject significant volatility into Tesla (TSLA) stock. What it ultimately means will depend on the specifics of the event.

4: A Foreign Drone Will Attack Americans on U.S. Soil

Tremendous evolutions in warfare have occurred in the last few years, most notably the drone.

The usage of drones has exploded in every major conflict, from Ukraine and Russia to the Middle East.

Recently, there have been concerns about unidentified drones flying over New Jersey.

The technology is cheap, deadly, and can be acquired easily. So I think bomb-laden drones are likely to be the next wave of terror attacks globally.

This is horrible, but I think it’s inevitable.

Like defense stocks, key intelligence contractors like Booz Allen Hamilton (BAH) have been hit hard on cost-cutting concerns.

I think more money will be spent in these areas, not less. This could lead to a lot of upside in this stock and others like it.

5: Musk and Trump Stay Buddies

Commentators on both sides of the political spectrum doubt this marriage can last.

Ultimately, I think both men are extreme pragmatists and will make it work. This is good for them — and for America.

Now, it’s fair to say that 2025 will be full of wild cards.

But don’t be surprised if any of these predictions (or the ones I shared with you on Monday) come to pass.

We hope you enjoyed this issue of Truth & Trends. Be sure to subscribe!