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.
In case you missed it, last week the Fed fired a warning shot across the bow of investors who’ve won the bet, so far, the stock market would enjoy a V-shaped recovery and the economy would follow suit.
No, the Fed didn’t upset the applecart on Wednesday. The market tested itself on Wednesday when fear of rapidly rising virus spikes in Arizona, Texas and Florida triggered profit-taking.
The Fed didn’t upset the market on Thursday either. It actually helped stocks rally on the heels of Wednesday’s selloff when it announced all its children, the banks it shepherds, all passed their stress tests.
Banks rallied nicely on Thursday as investors cheered the good news.
If you’ve been searching for yield in the bond market you know there’s not much out there to be had.
Good thing there’s another market where you can find good yielding investments. I’m talking about the stock market.
Hundreds of listed companies pay dividends to their stockholders.
It’s not hard to find lots of big dividend paying stocks in the market, including some really fat yields that look too good to be true.
That’s because some of them are, too good to be true, that is, which means probably too good to last.
Jun 25, 2020
If you didn’t buy in March, hopefully you bought the run up. APPL and GLD had a hell of a run – here’s what we’re looking at next.
Like I always say, “It’s all good; until it isn’t.” And right now, it’s all good for the stock market.
But the “wall of worry” the market’s climbed might be starting to crumble on top of it.
That means the rally, every point, percentage, and dollar tacked on since March 23, 2020 could be in danger. The markets could start to slip, and once they start, there’s no telling how low they’ll go.
You need to make sure you’re prepared. There are simple precautions you can take to help protect your wealth and your family – but you need to act quickly. Every day, we’re trading on borrowed time and a market that’s becoming thinner and thinner, essentially balancing trillions of dollars on the tip of a pin, and one wrong move could cause it all to evaporate into thin air.
Those who protect themselves, and do it the right way, can protect their family’s financial future for generations to come.
Those who do not risk losing everything.
My team has created a straight-forward guide on how to protect your financial future, and you can check it out here.
The “wall of worry” has been built higher and higher as people forget the feelings of the March lows.
Jun 24, 2020
We’ve seen major run ups and made record highs in the Big Tech sector, so is it time to sell?
Bluntly: NO. There’s so much higher to go, and more profits to take, so here’s what to do next.
Jun 22, 2020
The stock market is now up on a high wire, balancing where it’s come from against new winds buffeting it from underneath and above.
Here’s what’s front and center and what could push the market either way.
While two weeks ago was scary, especially watching stocks slide on Thursday June 11, 2020, and the majors ending the week down 5.5% for the Dow, down 4.78% for the S&P, and down 2.3% for the Nasdaq Composite, last week offered renewed hope.
Showing signs of recovery last week, the Dow ended up 1%, the S&P 500 was up 1.9%, and the Nasdaq Composite jumped 3.7%.
The week could have been a lot better, but Friday was a mess. The Dow, for example, after opening higher and climbing 357 points, sold off ending the day down 208 points.
Jun 22, 2020
As long as the bias isn’t down. The markets are taking a breather and the trend is clearly up. The volume is up, the trend is up, and investors are looking at retail, to bid up the markets higher. Here’s what to do.
Everyone knows the Fed’s manipulated interest rates down so low for so long there are no decent yielding investments in the fixed income market unless you’re willing to pay up for junk bonds.
But that doesn’t mean there aren’t great yielding investments readily available in other markets.
I’m talking about the stock market. Lots of companies pay dividends to their stockholders.
Some of them pay fat dividends, earn plenty of money regularly to keep paying them, and offer a kicker called appreciation.
Jun 17, 2020
As Yogi Berra famously said, “It’s like déjà vu all over again.”
I’m talking about the parallels between the day trading craze in the 1990s that helped fuel the 2000 “tech wreck,” and today’s retail investors driving stocks higher in the wake of the coronavirus pandemic.
The question now is, what will happen to the market if stocks, pumped up by retail speculators, falter like they did in the dot.com bust?
Jun 15, 2020
Just when the markets looked so promising to so many people, reality bites.
Yes, I’m talking about the frightening second wave of coronavirus infection spikes hitting U.S. states that recently “reopened”, hitting several countries especially hard, and as of this weekend, hitting Beijing, China, causing lockdowns in the country’s capitol.
That’s freaking out investors.
Jun 12, 2020
The stock market’s bounce off its March 23, 2020 lows turned into a rally, then into a bull market.
At least that’s what everyone saw happening until yesterday, when the Nasdaq Composite fell 5.27%, the S&P 500 fell 5.89%, The Dow Jones Industrials fell 6.9%, and the Russell 2000 fell a whopping 7.63%.
Is the rally over? Is the selling just some profit-taking? Or were we all head-faked into believing the worst is over as far as the stock market, the worst is over as far as the economy, and the worst is over as far as the pandemic?
The truth is out there.
But nothing is set in stone. If the pandemic comes back, the riots continue, or the President keeps tweeting, anything could happen.
The best way to protect yourself is to take concrete steps towards financial safety and economic security.
Thousands of Americans may think they’re set in the event of a crisis, not unlike the one we’re seeing now, but that frankly isn’t true. The truth is that a second downturn could absolutely ruin your financial future.
Unless you take the necessary precautions to prepare.
It’s nothing timely or complex – in fact, protecting your wealth can be one of the easiest things you do, if you follow these simple steps .
We’ve seen over $6 trillion evaporate in 2020 alone. Don’t lose any more cash and don’t let the effects of the coronavirus, or the seesawing market, take any more money out of your pocket (or your retirement fund, or your children’s college educations…)
Click here for more details on how to prepare for the worst.
You can protect yourself if you know what you’re up against, why our markets are hurting, and how you can make money against all odds.
Jun 10, 2020
Apple, Amazon, Facebook, and Microsoft all rallied in pre-market trading, some even closing in on new highs. There’s no reason we can’t go higher… a lot higher. Shah weighs in. Click here to watch
If you’re thinking when you retire you can live off some kind of fixed income portfolio, forget about it.
That’s a myth now.
Sure, there was a time when you could, but that’s gone the way of the dodo bird and free markets.
With the Federal Reserve manipulating interest rates “lower for longer” for decades and lately driving them down to near zero, or maybe busting another myth and turning them negative some time in our future, there’s no way anyone can retire comfortably, or retire at all, on a fixed income portfolio.
Not only isn’t there enough yield to be had, unless you load up of the riskiest bonds out there and good luck with that, you’re at increasing risk of losing money on your fixed income dreams in more ways than you know.
Jun 08, 2020
To say the market’s been on a tear would be like calling the Grand Canyon a ditch.
Last week the Dow ran up 1,727.87 points to end the week 6.8% higher. That’s half the gain in a good year. The S&P rose 4.9%. And the Nasdaq Composite, on an intraday basis, made a new record high, climbing 3.4% on the week.
All week the “honey badger” (Google: honey badger don’t give a damn) proved it don’t give a damn about China, or protests, or politics, or anything. It just keeps on going, doing what it does, keeps going.
And then on Friday, when the world was expecting the U.S. to lose 8 million jobs in May, the unemployment rate was expected to hit 20%, and the market to keep going anyway, only one out of those three things happened.
The U.S. didn’t lose jobs, it gained 2.5 million jobs. And the UE rate didn’t tick up to 20% from the previous months 14.7%, it fell to 13.3%. Of course, the honey badger did what it does.
Is it “irrational exuberance” or are investors taking a nothing matters and what if it did attitude?
Jun 08, 2020
People are buying shorts, the bears are plotting, and we’re looking for the next leg down… even though the markets are headed up. There will be falling stocks, but it’s not the ones you may expect to fail. Click here to watch