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.
Feb 01, 2019
The Federal Reserve System, the privately-owned central bank that most Americans believe is a department of the U.S. government, just publicly gave itself the last hammer it needs to nail shut the coffin they shoved free markets into.
By admitting it’s going to “think about financial conditions,” meaning the stock market, when exercising control over interest rates, the Federal debt, consumer and producer prices, employment, the economy, and investor returns, the Fed cemented its position as chief of the new command economy.
Jan 30, 2019
Apple Inc. (NasdaqGS:AAPL) reported dazzling earnings yet again, shooting the stock back into the $160-$163 range. This is the highest the stock’s climbed since the brutal volatility of October 2018, and our Shah Gilani agrees with many Apple spectators – this stock is definitely a buy right now.
On this week’s episode of Varney & Co., Shah Gilani and the panel of experts discuss the latest on Facebook Inc. (NasdaqGS:FB). Though the company allegedly paid teens to install an app that could collect information – but, as Shah says, the people involved knew what they were signing up for, so he doesn’t see this as something that will affect the stock. Later, with the cold front already striking multiple cities across the U.S., the experts debate on what this frigid weather could do to one sector’s impending earnings… Click here to watch.
Jan 29, 2019
As if thirteen so-called “exchanges” and forty “dark pools” aren’t enough, here comes the Members Exchange (MEMX).
Founding members of Bank of America’s Merrill Lynch, Morgan Stanley, UBS Group, Charles Schwab, TD Ameritrade, E*Trade Financial, Fidelity Investments, Citadel Securities, and Virtu Financial claim the new trading venue slated to open in 2020 will feature lower costs, greater transparency, and simplified order types.
Seems all well and good, but what they’re never going to admit is why they’re really pushing another exchange into an already fragmented, liquidity draining, churning ocean of viciously competing trading venues.
But I’ll tell you.
Jan 25, 2019
On Wednesday, shares of International Business Machines Corp. (NYSE:IBM) jumped more than 10% on its better-than-expected earnings report.
The stock closed at $133.34, up 8.8% on the day.
Calling that remarkable is like calling the Grand Canyon a ditch.
It’s remarkably ridiculous, because IBM is the worst managed company in America – and its stock is heading right back where it belongs, in the garbage heap.
Jan 24, 2019
If you’ve been a Wall Street Insights & Indictments reader for any amount of time, you know that Shah’s goal with this e-letter is to reveal the truth when the media can’t (and won’t), show you how to make an absolute killing no matter what the market’s looking like, and to teach you how to play the Wall Street system.
And that’s exactly why we’re here with you today.
Wall Street no longer makes sense – you watch, day in and day out, as companies you thought were healthy crash and burn for seemingly no real, logical reason. Then, at the same time, other companies that should skid down the runway suddenly soar, leaving us scratching our heads and wondering if the rules even apply to Wall Street anymore.
Truthfully, they don’t. We’re in a new reality, and investors have no choice but to adapt.
But Money Morning‘s Keith Fitz-Gerald has spent decades – and over $5 million – creating a system that can help you make sense out of the nonsense that’s become the Wall Street norm.
With the help of this system and Keith’s expansive knowledge, you could be on the other side of this new reality – and be one of the only ones to have the chance at a straight shot to making over six figures by next year.
Jan 23, 2019
The most important thing for the market right now is China – and without a note of some resolution, Shah Gilani says that the President needs to do something to push the market higher. If we get a deal with China, the market could set the stage for a further rally. But if nothing happens, a big tank could be ahead.
On this week’s episode of Varney & Co., the hot question of the hour is what’s more important right now – earnings or China? Easily, according to Shah Gilani, it’s China, because if no resolution comes, these tariffs could morph into a full-fledged trade war, which is exactly what the market doesn’t need right now. Later, the panel of experts talk Tesla Inc. (NasdaqGS:TSLA). The company plans to raise the price of its electric vehicles, which Shah declares is a terrible move – but, he mentions, could present a good shorting opportunity if TSLA stock drops lower… Click here to watch.
Jan 22, 2019
Poor, tarnished Apple Inc. (NasdaqGS:AAPL).
It did everything right for decades, making itself the first company in the history of the world to be worth one trillion dollars.
Then it fell off analysts’ conviction buy lists, and Apple’s stock got hammered good and hard.
What suddenly happened to the most valuable company in the world? How could it lose almost $300 billion in value in a matter of weeks?
Truthfully, what happened to Apple was mostly its own fault. Sure enough, it got caught up (or down as the case may be) in the market’s October selloff, but that wasn’t unexpected.
In hindsight, Apple held up better than the market last October and better than its FAANG family members did.
What took the shine right off the most valuable company in the world, after its all-time high of $233.47 in October, was the company’s announcement on November 1, 2018, not a month after its high water score, that it would no longer breakout iPhone sales in its earnings.
The stock got hammered – hard.
That self-inflicted wound, some say death knell, happened just as the Dow Jones Industrial Average, which had traded down close to 24,000 at the end of October, began a robust rally.
Only a week and a half into November, the Dow got back above 26,000.
Apple, not so much. In fact, not at all. Apple stock continued to slide, like it was falling off Everest.
The stock traded down to $142, just shy of a 40% dump off its high-flying act.
It’s back up around $155 today.
Is Apple at $155 or just below there a “value” stock? Is it a bargain down by more than 33%?
Or, is Apple too full of worms and worth betting against?
Jan 18, 2019
Last week, the investing world lost a man of conviction, and, for sure, contradictions – a true luminary, a pioneer, an advocate for “Mom-and-Pop” investors, a generous man, and a legend in his own time.
John Clifton Bogle, who preferred to be called Jack, died at the age of 89, leaving behind a lot.
That’s because Jack, who started The Vanguard Group, the $5.3 trillion asset management company that specializes in indexed products for passive investors, left behind an estate worth $80 million.
That’s after giving away half of his Vanguard salary for most of his working career.
But, the legend himself began criticizing the passive investing boom he’s credited with pioneering.
Whether his accumulated apprehensions and market fears will lay the myth of passive investing to rest, he won’t get to see – but we better be watching if the myth turns into a monster.
And, later, I have a special message for you about another hot topic in investing.
Jan 16, 2019
Despite a rough end to 2018, we’re off to a good start in the New Year. If earnings come out positively, that will be a boost in the right direction for stocks. Though, says Shah Gilani, we are at critical levels right now on the major indexes, if the Dow stays above 24,000 and the NASDAQ stays above 7,000, he’s all in.
On this episode of Varney & Co., host Stuart Varney, Shah Gilani, and the panel of experts discuss how the incredible defeat of Prime Minister Theresa May’s Brexit deal will affect the U.S. It’s a “non-event” to us, Shah says, and if there is a hard Brexit, he believes that the U.S. market, which is the strongest market in the world, will soar higher as money moves over here. Then, later, the experts discuss the fate of social media favorite Snap Inc. (NasdaqGS:SNAP) as its Chief Financial Officer, Tim Stone, leaves the company (and $19 million) after just eight months. What does this mean for Snap and its users? It may not be good news… Click here to watch.
Jan 15, 2019
Besides the U.S. and China saber-rattling over control of the South China Sea, the reason the U.S. will never get what it really wants in a trade deal is because Chinese “trade” is how China plays its foreign policy game.
And they’re very dirty players.
What the U.S. needs to get out of a trade deal is for China to stop playing dirty, which it will never do.
Jan 11, 2019
The chances of the U.S. and China, the two biggest economies in the world and the two remaining superpowers on the planet, amicably settling the trade tiff between them are between slim and none.
Fake news that midlevel U.S. negotiators had productive meetings with their Chinese counterparts this week was just that – fake news.
That’s because something else was happening this week between the U.S. and China.
The truth is there are two reasons, one insidious and one frightening, why a comprehensive trade deal will never be struck.
Next week, I’ll tell you what the Chinese have really been doing that makes an honest deal impossible.
But first, I’ll give you the frightening reason today.
It’s been brewing for years.
Jan 09, 2019
The shifting sands of 2018 turned Shah Gilani from a “raging” bull to one of a more cautious variety. But now, a week and a half into the New Year, it’s plain to see that the market wants to go up. According to Shah, we’re in the preliminary stages of a melt-up, but we aren’t out of the woods yet…
On this week’s episode of Varney & Co., the panel of experts discusses what earnings could bring. The market, which is jittery at best as we enter earnings season, desperately wants to see strong earnings, and if things go south, the market will undoubtedly take it on the chin. And before Shah is even comfortable with jumping back into the market, the Dow must reach one specific level… Click here to watch.
Jan 08, 2019
Last Thursday, three former Credit Suisse bankers were arrested in London in connection with a fishing fraud aided and abetted by Mozambique government officials and other characters.
Indictments handed down by the United States District Court for the Eastern District of New York charged the bankers and their accomplices with bribery, money laundering, and securities fraud in connection with raising more than $2 billion for three suspect companies, including a tuna fishing business marketed as guaranteed by the government of Mozambique.
The companies, with proceeds from bond sales, allegedly generated cash to pay bribes and kickbacks by overpaying $713 million for equipment they bought from an accomplice.
Corporate investigations and risk consulting firm Kroll says $500 million of the money raised is missing.
More than $50 million was paid to the bankers and their cohorts in the form of kickbacks.
That doesn’t include $200 million in bank fees the conspiring borrowers paid their bank cronies.
It’s another story of greedy, loan-pushing bankers, paying bribes, getting kickbacks, canoodling with corrupt foreign heads of state and government officials, and bank compliance departments being circumvented like subway thugs jumping over turnstiles.
Jan 04, 2019
Back in October, JPMorgan Chase & Co. (NYSE:JPM) analysts Eduardo Lecubarri and Nishchay Dayal warned that $7.4 trillion of global assets managed in passive funds could exacerbate a rout the next recession.
They were wrong, but at the same time, they were right.
We’re not in a recession.
But, the escalating selloff is weighing heavily on passive investors, especially in the highflying big-cap stocks that led indexes and index funds higher for ten years.
That means passive investors are losing money and could turn seriously active any day now.
If that happens, a crash may not be far behind – and we’re getting close to market levels that could trigger active selling by passive investors.
Jan 02, 2019
For most of last year, tech stocks were the momentum drivers; but now, after a tumultuous final quarter of 2018, momentum has reversed. There are no true leaders to look to, and an aura of negativity seems to permeate the market.
On the first episode of Varney & Co. in 2019, worries are still rampant when it comes to the government shutdown. But, as guest host Charles Payne points out, investors may be surprised (and relieved!) to know that the last time a shutdown coincided with the market falling was in 1990. Rather than focusing on that, Shah Gilani later reveals what investors should be focusing on as we enter the New Year – and a new, bearish-leaning market. Click here to watch.