Editor’s Note: As Chief Investment Strategist of Total Wealth, Shah believes in making his track record of recommendations easily accessible to all readers within seconds – and that’s why he’s compiled an Archives page.
The up and down sounds you’re hearing out of equity markets reminds me of what it sounds like when racecar drivers, positioned on the starting grid, rev their engines before the checkered flag is waved to start the race.
Investors know there’s a big spending race about to start with the Biden administration poised to unleash a torrent of cash on households, unemployment support, health initiatives, states and cities, and eventually on infrastructure and a Green New Deal. As such, they’re positioning themselves.
Jan 15, 2021
Click here to download the PDF version Sometimes the stocks that hold the biggest opportunities aren’t the ones plastered all over the news. Wall Street has an agenda that ropes in everyone from the financial media to billionaire hedge fund …
In hindsight, the market’s extraordinary rally on the heels of Donald Trump’s election was mostly unexpected, until investors realized they had to get on board or miss the bus. And they did – get on board, that is. And they kept coming and markets kept rising.
This time around, investors are expecting markets to climb on the heels of a Democrat-led Congress and Executive Branch. And markets are already rising.
The question a lot of analysts and investors are asking themselves is, will a Democrat-led economy crush the push markets got under a Republican presidency?
My bet is they will.
What a week it was – and I mean for markets.
The Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite notched new record highs on Friday, and the Russell 2000 made its mark the day before.
Last week’s message wasn’t so much “so what,” as it was “spend, spend, spend” because that’s what markets were focused on.
The Democrat-controlled Senate, House, and Executive branch are expected to unleash a tsunami of spending that investors expect will include helicopter money dropped into Americans’ bank accounts, a lot of which will end up being moved into their brokerage accounts, spending on infrastructure, the environment, the economy… You name it, and there will be money thrown at it.
That’s what drove markets higher last week. And there’s no reason they can’t keep on rising.
Jan 08, 2021
The political beat isn’t my thing, but democracy and making money are right up my alley.
That said, I’d be remiss if I didn’t address what happened at and in the U.S. Capitol on Wednesday.
I’m sticking to the middle of the road here and focusing more on what will happen now that the Senate is in the hands of the Democrats, the Presidential inauguration is right around the corner, and we’re on the brink of what we hope to be a prosperous new year.
Two of America’s technology giants are under attack. The U.S. Department of Justice, the Federal Trade Commission, and dozens of U.S. states are suing Google and building cases against Facebook, alleging anticompetitive behavior by the firms individually and by working together.
Of course, the mega-cap tech giants are fighting back.
Google, which is being hammered hard over its virtual advertising monopoly, retorted in a blog, “To suggest that the ad tech sector is lacking competition is simply not true, to the contrary, the industry is famously crowded. There are thousands of companies, large and small, working together and in competition with each other to power digital advertising across the web, each with different specialties and technologies.”
Regulators aren’t buying it.
With so much heat coming from above and below, the biggest tech companies in America, in the world, are facing almost impossible-to-defend-against attacks on their unseen and allegedly unseemly business practices, with some possibly landing on the chopping block.
Long before any final hammers come down, investors want to know what to do with their stocks, specifically Google and Facebook.
Your Capital Wave Forecast for this week is “bullish.” For this month, for the first quarter of 2021, and for the year, it’s bullish.
That doesn’t mean we’re not on “bubble watch,” because we are.
The forecast is bullish because equity markets can continue to rise as bubbles self-deflate, get pierced, or burst spectacularly.
That’s where we’re at. That’s how strong momentum is coming out of 2020 and going into 2021. The same momentum-drivers will likely persist throughout the first quarter and probably the first half of the year.
Jan 03, 2021
Big technology companies are under attack, again. After fighting off frontal assaults for years, giants like Google, Facebook, Amazon, Microsoft, and Apple are about to be hit from all sides.
The European Union is nearing completion of aggressive legislation to curb big tech’s ever-widening reach and range while the U.S. Department of Justice, the Federal Trade Commission, and dozens of states plow ahead with investigations of their own.
Here’s what’s at stake for the titans of tech…
Investors Want “More, More, More” As We Head Into the New Year… Here’s What That Means for Your Money
If you’re old enough to have lived through the “disco era,” you know the song “More, More, More” by Greg Diamond and performed by Andrea True. That mega-hit was released in February 1976 and became one of the most popular and played songs in discos around the world.
And, yeah, I was there.
It’s also what investors and markets are singing and dancing to right now, particularly the lyrics: “More, more, more / How do you like it, how do you like it?”
And as former Citigroup Inc. (NYSE:C) CEO Chuck Prince told the Financial Times in July 2007, long after the disco era passed and right before the financial crisis, “As long as the music is playing, you’ve got to get up and dance.”
If you aren’t getting it, if you haven’t gotten the beat yet, just listen; it’s hard-driving and hypnotic. It’s about more, more, more.
If you didn’t read Wednesday’s Total Wealth, you need to because today’s picks up where it left off. Click here for the full story.
SoftBank Group Corp. (OTC:SFTBY) and its Vision Fund are promoting a new SPAC (special purpose acquisition company) which, when it IPOs, will raise $525 million.
The SPAC will use that $525 million, and at least another $200-$300 million, that SoftBank says it will provide in the form of a forward financing agreement, otherwise known as a PIPE (private investment in public equity), so the SPAC can buy a worthwhile, and maybe expensive, target operating company.
Here’s how expensive a potential target could become…
Dec 23, 2020
Since it’s the holiday season and gift-giving is the order of the day, SoftBank Group Corp. (OTC:SFTBY) is smiling on itself. It’s gifting itself with a SPAC, which, as sure as the earth’s still turning, won’t be its last.
Should you buy into this SoftBank SPAC when it IPOs? Should you buy into any SoftBank SPAC, ever?
Just when everything was looking like so many presents around the Menorah and under so many Christmas trees, the Grinch appears.
Has he stolen investor optimism, or is this just a smirky reminder that not everything’s right with the world?
Dec 18, 2020
If you want to know why I’m so bullish, all you have to do is look at the Russell 2000: It’s on fire.
The “rotation” trade has done A LOT for the Russell 2000 a lot for equities across the board.
“As long as the music is playing, you’ve got to get up and dance.”
That’s your Capital Wave Forecast. It’s short and sweet and reminiscent of another time when markets were rocking, and investors were raking in the dough.
You might even say, “It’s like déjà vu all over again,” as famously said by Yogi Berra.
Yes, I’m still very bullish. And, yes, maybe my eyes are getting a little glassed over. After all, I’m calling for another 10%-15% rise in benchmarks in 2021 – maybe more.
But that doesn’t mean I’m blind to what’s going on.
In case you haven’t noticed, there are a lot of newly minted SPAC IPO pickup artists cruising the financial highways and byways looking to hook up with private operating companies, merge them into their magic SPACs, and exit the highway, where some will break down, if not blow up, on some dead end.
Even traditional IPOs are coming out fast and furiously, with Airbnb and DoorDash debuting this week.
Everyone in IPO Land is partying like it’s 1999. Is this “déjà vu all over again,” or is this time different?