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 19, 2019
The price of bitcoin rose 8.6% from the end of last week to yesterday, February 18, on news that JPMorgan Chase & Co. (NYSE:JPM) was launching the first-ever major bank-backed cryptocurrency, JPM Coins.
Apparently, after Jamie Dimon, JPMorgan Chase’s chairman and CEO, called bitcoin a “fraud,” saying in October 2017, “If you’re stupid enough to buy it, you’ll pay the price for it one day,” the big bank honcho has had second thoughts.
Something changed for Dimon and JPMorgan Chase, and today I’ll tell you what a bank coming to market with its own coin means for bitcoin and other cryptocurrencies – and it isn’t what you think.
Feb 15, 2019
Deutsche Bank Aktiengesellschaft (NYSE:DB)’s “troubles” aren’t just a concern for the survival of Germany’s largest bank; they’re the same troubles most European banks face.
Frighteningly, those troubles collectively threaten the future of the European Union and, by extension, global markets.
That makes Deutsche Bank Europe’s canary in the coal mine.
Bond and equity markets better be listening to the chirping noise coming from Frankfurt, because it’s getting louder.
Let’s talk about what’s ailing Deutsche Bank and what DB tells us about other European banks. Then we’ll get into how the European Central Bank (ECB) is the common thread in their flawed knitting, and what could happen to bond and equity markets if the canary croaks.
Feb 13, 2019
The market clearly wants to go up after the rough patch that was December 2018. January was a glimmer of hope, and after ten consecutive weeks of outflows from ETFs and mutual fund products, Shah Gilani believes that money is looking to the market – and if the rally continues, it’ll jump back in.
On this episode of Varney & Co., the panel of experts discuss go on to discuss what Amazon.com Inc. (NasdaqGS:AMZN)’s first-mover advantage may have had on Walmart Inc. (NYSE:WMT)’s recent grocery delivery problems. It’s no secret that Amazon’s strength greatly weakens other companies, and with Walmart willingly bowing out of the agreement they had with their partnerships, this may not bode well for Walmart’s ability to keep up with the trends… Click here to learn more.
Feb 12, 2019
Last week, senators Chuck Schumer (D. NY) and Bernie Sanders of (D. VT) co-authored an opinion piece in the New York Times titled, “Limit Corporate Buybacks” with the subtitle “Corporate self-indulgence has become an enormous problem for workers and for the long-term strength of the economy.”
They’re right that buybacks should be limited, but wrong about their impact on workers and the economy.
So, today I’ll tell you what the senators got right, what they got wrong, and how buybacks should be treated.
Feb 08, 2019
Growth across the European Union is slowing, quickly and dramatically. On top of that, Brexit looms.
For interest rates, the euro, European stock markets, and Eurozone banks, that means, look out below.
Something’s happening across Europe, and you need to be aware.
Things could get bad, and you need to know where to take cover.
Feb 06, 2019
Following President Trump’s State of the Union address, the agenda of which he stated was neither Republican or Democrat, but was one of “the American people,” it seems that nothing, so far, that he said will push the market one way or the other.
On today’s episode of Varney & Co., in reference to last night’s address, Shah Gilani goes on to say that had the President said something more positive about China, the market may have opened stronger today. Moving straight into some of the market’s tech darlings, host Stuart Varney asks Shah what he thinks about Apple Inc. (NasdaqGS:AAPL) and one company that Shah warns could be hit hard if it keeps raising costs… Click here to watch.
Feb 05, 2019
Most Americans would probably agree, if the Federal Reserve hadn’t come to the rescue in the 2008 financial crisis, the United States (and the world) would have sunk into another Great Depression.
However, most Americans don’t realize that the Fed caused the financial crisis of 2008 by keeping interest rates artificially too low for too long, fostering “irrational exuberance” and insanely leveraged mortgage bubbles.
How do you know I’m telling you the truth?
Ask yourself two questions:
- What caused the financial crisis?
- Where was ground zero?
If you don’t immediately and automatically, instinctively and historically know the answers to both questions, I’m afraid you don’t know what you don’t know.
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.