Look Out Below: The Mortgage Market Is About to Revisit 2008 Crisis Woes Part II

Last Friday, I gave you this warning: The mortgage market is once again in danger, only this time the damage is going to be a lot worse, last a lot longer, and impact the housing market and the economy in worse ways than the 2008 financial crisis did.

I laid out all the details and data in Friday’s article, which you can read here, but today, I want to get into it a little bit more. It’s going to be hard to hear, but it’s absolutely necessary, since it will affect your Total Wealth.

If you thought the worst of the financial crisis was way behind us, you’re about to get a rude awakening.

Mortgage Massacre 2.0 is right around the corner.

Here’s how “forbearance” and “rent strikes” are already impacting the mortgage market and how what’s barreling down on us is going to make 2020 look like 2008 all over again.

A Selloff or A Rebound: Anything Could Happen

The Fed’s sending mixed messages. In a downturn, they only expect things to get worse… and with earnings season upon us, it could get worse before it gets better. Click here to watch

Shah Gilani: We May See More Unemployment, But This Rally is Real

Stocks just want to go up, investors are buying, and there are profits on the table. Beaten down stocks are getting bids, the market is rotating, and we may, finally, be looking at a healthy market. Click here to watch

Investors Open Up Their Wallets as the Economy Opens Up: But V Isn’t the Only Letter in the Alphabet

What a week equity investors had.

The Dow Jones Industrials rose a robust 2.56% last week. The S&P 500 rose a resounding 3.4%. And the never-not-leading Nasdaq Composite skyrocketed 6% higher.

That’s what I call getting it while you can, which is what I advised investors do last week.

While markets look crazy soaring every week, initial unemployment claims rise by an average of 4,100,000 per week; and benchmarks shot even higher last week as the Bureau of Labor Statistics reported 20.5 million jobs were lost in April and the nation’s unemployment rate leapt to 14.7% (wink, wink, BLS admitted it’s likely 5 percentage points higher, but seasonal and other haircutting, face-saving, adjustments wouldn’t let that headline fly), they may be right to pat themselves on the back.

That’s because the “V-shaped” recovery investors expect is self-fulfilling. I’m not talking about the economy’s recovery. I’m talking about the market’s recovery. It’s V-shaped, for sure

Call it confirmation bias.

As investors see more bad news, they see it getting closer to being the worst its going to get and that means we’re closer to turning around and that means buy, buy, buy. They see the economy opening as confirmation we’re on the other side of lockdowns, and stores and businesses opening as a reason to buy, buy, buy. Everything bad to do with the pandemic is behind us is what optimistic investors believe.

That’s confirmation bias in action.

That’s why the market’s experienced a V-shaped recovery.

More importantly, they say better than expected earnings keeps confirming their biases.

It’s all good. Until it isn’t

Look Out Below: The Mortgage Market Is About to Revisit 2008 Crisis Woes

If you thought the worst of the financial crisis was way behind us, you’re about to get a rude awakening.

Mortgage Massacre 2.0 is right around the corner.

Here’s how “forbearance” and “rent strikes” are already impacting the mortgage market and how what’s barreling down on us is going to make 2020 look like 2008 all over again…

The Markets Are Pushing Higher, Despite Unemployment Lows

Things are good so far, and we can thank FOMO and momentum-buying for the bounce we’re seeing off March lows. But then there’s short-buying, and we could be looking at a severe pullback. Click here to watch

Where All the Money’s Going in the Market Is Where You Should be Going Too

According to the Investment Company institute (ICI), year-to-date, investors have taken some $291 billion out of mutual funds and exchange traded funds.

But that’s not the whole story.

The ICI’s numbers represent net flows, meaning there were inflows, but they were dwarfed by outflows.

The story isn’t about net outflows, it’s about where the money went that flowed into the market.

Here’s where most of the money went and why you should follow it…

Big Tech is Leading Us Higher

Big tech, especially the FAANG stocks, has been pushing the markets higher since 2008. Nobody’s going the challenge these tech leaders, and, as long as money pours into these stocks – which it does, and it will – the markets are going higher. Click here to watch

Capital Wave Forecast: Get It While You Can

I’m going to let Janis Joplin tell you what to expect and what to do with equity markets this week and this month.

“Get it while you can.”

That title lyric was on Janis’ 1971 posthumous album Pearl, and it’s what investors need to remind themselves to do.

Because the dramatic bounce off the March lows has maybe a little more to go, at least for some stocks, before markets give up the ghost of depressions past and head back down to earth, maybe below, meaning towards the fiery place way under our feet.

But not all is lost, yet. Before the storm last week, which came Thursday and Friday, stocks were riding news that big tech earnings were hardly indicative of a depression on the horizon…

A Conspiracy of Greed: How to Beat Crony Capitalists at Their Own Game and Save the Middle Class

A Conspiracy of Greed: How to Beat Crony Capitalists at Their Own Game and Save the Middle Class Ever wonder who’s responsible for the widening wealth gap in America? Or how the middle class across the country got hollowed out …

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This Trade Is One of the Last Profitable Plays in the Dying Retail Sector

Everyone shops – but thanks to the Internet, where and how we shop has changed in ways that none of us ever imagined. And our shopping habits aren’t the only thing that’s changed. For one, the retail landscape is already …

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CEOs and Politics Are a Bad Mix: Why C-Suite Execs Should Keep Quiet on Issues That Don’t Affect the Bottom Line

Not everything Wall Street and Corporate America does wrong is corrupt. Often it’s just dumb – even when they’re trying to do the right thing. And today, I’m telling you all about the current #1 example of dumb do-goodism – …

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The Next Step for Airline Stocks

Airline stocks took a hit as Warren Buffett dumped all of his airlines stocks, and his statement was clear: He’s willing to take a sharp loss instead of “wait it out.” The airline stocks aren’t coming back any time soon, at least not according to Buffett. Here’s what Shah thinks. Click here to watch

Four Ways to Play Volatility for Major Profits

Several times a week, my readers at Total Wealth Research come to me saying they might leave the markets for fear of volatility, recession, stagflation… So, I want to make something clear: pulling out of the markets is a mistake …

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The Great Oil Spill Courtesy of USO and China

Shah here.

Keith started the story last week: he exposed the oil crisis and what was driving it, but the story has developed and as your new editor of Total Wealth, I am thrilled to continue the story.

To those who have been following Keith at Total Wealth for any amount of time: I promise I won’t let you down. I have worked very closely with him for twenty years, and our mottos are very similar. At the end of the day, we know there’s a way to make money – at all times – and we are dedicated to bringing those opportunities to you.

To those of you who have been following me for any amount of time: Thank you for your continued support! I look forward to continuing our journey together, bringing down the Wall Street fat cats and ringing out the stock market for every penny we can.

Starting with the oil crisis…