The Unintended Consequences of These New Rules Could Kill the Rally – Or Worse

0 | By Shah Gilani

Starting October 14, 2016, institutional prime money market funds won’t be able to price themselves at a constant $1.00 a share.

New SEC rules will require these giant funds to value shares based on actual market prices for underlying assets in their portfolios.

That means their per-share prices will fluctuate on a daily basis.

While that’s not exactly good news, it gets worse.

The rules allow funds to charge up to a 2% redemption fee when investors want out.

But the killer is, funds can put up “gates” that prevent investors from selling shares.

Besides problems investors will have with the new rules, unintended consequences affecting companies and municipalities that rely on selling their commercial paper and other short-term debt instruments to these big funds could end up killing the market.

Here’s what you need to know, and what to do…

Is This Embattled Pharma Stock Now a Buy?

0 | By Wall Street Insights and Indictments Staff

Ahead of congressional hearings to discuss the recent price boost for the company’s, EpiPen product, Shah speculated that pharmaceutical company Mylan NV (NASDAQ:MYL) could be a buy.

On the morning before the hearing, Shah said that the bad news was already out there, and as a result the stock was hovering just above its 52-week low. He further said that the stock was likely to bounce back – and he would even be looking to buy if it dipped lower during the hearings.

Sure enough, the stock has tacked on 4.74% since.

Shah also discussed, Microsoft Corp. (NASDAQ:MSFT), Tesla Motors Inc. (NASDAQ:TSLA), the Bayer-Monsanto deal, December’s likely rate hike, and the politicization of the Fed.

Click here for the full video.

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