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.
Jul 15, 2020
Yesterday we saw the Dow rally 500-something points, then fall and flatten out. The Nasdaq swung over 100 points, ending down. The answer to these stocks wild ride lies in earnings. Click here to watch
Jul 14, 2020
It peaked at 9:45 and fell off a cliff – and the rest of the markets followed. Is it a bellwether, or simply an overvalued stock with shorts to cover? Shah Gilani weighs in.
With markets working themselves higher last week, higher since the March lows, higher forever for the Nasdaq Composite, you could say the good news is behind us and what’s up next will be weightier.
When I say good news, I’m not talking about the bad news all around the country showing dramatic and frightening coronavirus spikes, I’m talking about most of the economic indicators coming out ahead of analysts’ expectations over the past four weeks. Not all of them mind you, but most of them.
Why? Because analysts knocked down every number, every expectation, every hope they had.
Is it too late to buy the FAANG stocks, Facebook, Apple, Amazon, Netflix, Google, and Microsoft?
In a word, “no.”
But with their valuations peaking, concentration in them at all-time highs, and pushback from advertisers, regulators, and politicians mounting, an increasing cadre of skeptics and analysts think their run’s about over.
Let’s examine the bull case and bear case for these mega-cap tech darlings and why it’s not too late to buy them.
Everyone knows shopping has changed forever. Online shopping is in, bricks-and-mortar stores are out.
Maybe not forever, but with cities, counties, and states prone to stay-at-home orders, no thanks to the coronavirus pandemic, shopping in physical stores is less appealing than ever.
Shopping malls, with their higher density, which get closed quicker than standalone stores and take longer to open, have been hit even harder by the pandemic and changing consumer habits.
For malls, suffering systemically, it’s the end of an era and the end of the line for many of them.
Last week, equity markets roared back to life in a shortened trading week. The Dow Jones climbed 3.2% on the week, the S&P 500 climbed 4%, and the Nasdaq Composite climbed 4.6%.
That healthy rise came on the heels of the previous week’s losses, which came on the heels of the previous week’s gains, which came on the heels of the previous week’s losses. Which collectively amounted to a lot of sideways, go-nowhere action for the Dow, the S&P, and the Russell 2000.
But not so for the Nasdaq Composite, which just keeps defying gravity.
The back and forth in equity markets has been about risk-on versus risk-off, which has been about Covid-on versus Covid-off, which forces the fight between stimulus-on versus stimulus-off.
Jul 02, 2020
To celebrate your financial freedom this Fourthwsq of July I’ve got five dividend paying stocks you can retire on.
You’ll know they’re great recommendations if you read my last two Total Wealth articles.
In the first article of this three-part series I showed you how to look through a few simple, easily found metrics to determine if a company’s dividend is safe, and by how much.
But you won’t have to do any calculations today, I’ll give you the safety-stretch numbers.
In the second article in this series I told you how trillions of dollars of buybacks are going to be converted to dividends in the future. Because the public’s outraged at companies manipulating their stock prices higher to compensate executives while workers’ wages stagnate. Because politicians are going on the warpath over the same issues and how the last tax cut juiced up buybacks by another trillion dollars. And because dividend payments are good for shareholders and the economy.
Investors looking for good dividend yielding stocks don’t typically expect much price appreciation.
That’s going to change, probably sooner than anyone expects.
Here’s why dividend paying stocks have been playing second fiddle to growth stocks, what really drives growth, and how one all-important manipulative “growth factor” is poised to be flipped over to the benefit of dividend paying companies and their stockholders…
Jun 30, 2020
We’ve had some selldowns these past few Fridays, on pretty strong volume… but we’re coming back strong on Mondays. Investors don’t want to hold over the weekend, but they want to be in the markets, and we could be facing another leg higher.
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 26, 2020
Click here to download the PDF version The markets took a massive hit at the start of the coronavirus pandemic. But amazingly, people began buying at record volumes. Millennials, boomers, and everyone in between started snapping up stocks at rock-bottom …
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.