If you want to thank someone for the year-end stock market rally, thank the junk bond market.
Just don’t fall in love with stocks as they’re rallying… because the help they’re getting from the junk bond market won’t last.
In fact, stocks will likely be headed back down in first quarter of 2016 when the junk bond market resumes its ugly selloff.
Here’s what’s going on with junk bonds, why stocks are rallying, and why momentary calm in the junk bond market will give way to a storm that’s going to take stocks back to their August 2015 lows… and possibly a lot lower.
And when that happens, we’ll be ready. Because I’ve got the perfect way to play it.
I love hearing from you, and I assume you like hearing from me.
So in honor of the holiday season, here’s a “grab bag” of some reader questions on my recent articles. I had fun answering them – please keep them coming!
First up, here are some questions people had after reading “The Hidden Impact of the Fed’s Impending Rate Hike… and How to Profit“: Q: Will you please tell me what ETFs I can use when the markets go down? ~ Tony D.
A: When I’m bearish and want to bet stocks are headed lower, I generally like buying inverse ETFs based on the major market indexes.
Gas prices are at a record low and markets continue to rally. What could go wrong? Plenty, it turns out.
In his latest interview on “Varney & Co,.” Shah explains why the combination of falling oil and a rising Dow could spell a disastrous 20% drop by Q1 2016. Then he offers insight into whether or not oil dividends are safe – and comments on Apple’s surprising drop and McDonalds’ even more surprising rally.
And as a post-debate bonus, he clues viewers in on the Republican candidate whose fiscal policy he likes best.. It might not be the one you’d expect!
While Shah allows that the markets could very well rally into year-end, he’s convinced that the selloff – the real selloff – hasn’t even begun yet.
If markets do in fact rally (with Santa’s help), January could get ugly. The big-cap leaders could still drag the markets higher, but there’s nothing underneath to sustain a real rally.
Shah weighs in on a possible merger of EI du Pont de Nemours and Co. (NYSE:DD) and The Dow Chemical Co. (NYSE:DOW) – and why we shouldn’t care about this overblown bit of financial engineering. He also comments on the recent surge by Smith & Wesson Holding Corp. (Nasdaq:SWHC) – and where he expects the stock to go from here.
Everyone – from the suits on Wall Street and the pundits on television to individual retail investors – is talking about the Federal Reserve raising interest rates for the first time since 2006 – and what’s going to happen to stocks, bonds, and commodities here in the United States.
There’s a lot of noise out there, and it’s difficult to separate the valuable, useful information from the nonsense.
Today, I’m going to tell you exactly what’s going to happen with interest rates, and what it’s going to do to stocks, bonds, and commodities.
But there’s hidden impact to the Fed’s impending interest rate hike that people aren’t talking about. I’ll tell you about that, too.
And, of course, I’ll show you what you can do to protect yourself – and make money from what everyone else is so afraid of.
A New York Stock Exchange (NYSE) Trader Update dated November 16, 2015, abruptly announced:
Subject to effectiveness of a rule filing with the SEC, NYSE and NYSE MKT will no longer accept new Stop Orders and Good Till Cancelled (“GTC”) Orders beginning February 26, 2016. Additionally, all existing GTC and Stop Orders residing on the NYSE book will be cancelled.
The NYSE ending GTC orders – which typically expire in 90 days anyway – isn’t a big deal because brokerages have their own in-house GTC orders investors can still employ.
And brokerages will still offer stop-loss orders. The only difference will be they’ll get triggered in-house and then sent as a limit or market order to be executed.
Since investors can still place stop orders and GTC orders with brokerages, the NYSE saying it would no-longer accept stop orders doesn’t appear to be earth-shattering.
On his latest Varney & Co. interview, Shah talks holiday mayhem, good and bad stocks, and the real meaning of the year-end rally.
Shah explains why the rally is misleading, why he still expects a 20% drop, and what has to happen before the market drops. Then he gives you an insider’s look at top stocks – find out why he loves Amazon, why he couldn’t care less about Tesla, and why you really shouldn’t buy Walmart right now. Bonus: Shah’s pick for a great Christmas play.
On Varney & Co. today, Shah takes on current events, turmoil overseas, and what he’s not buying right now.
Get Shah’s perspective on whether the U.S. is still the safest place to put your money, plus an update on his prediction that the market is set to go down 20%. Find out where he thinks the price of oil is headed, and how that number will affect the Dow… How the turmoil in Europe might affect the Fed’s next move…. What he thinks about the potential “retail ice age,” and how he really feels about Target.