Archive for January, 2017

This Market Correction Omen Just Isn’t What It Used to Be

7 | By Shah Gilani

Price Earnings (PE) multiples are standard market metrics. They’re ratios that tell us how much investors are paying for a company’s earnings, or the total earnings of a market benchmark.

For example, a PE ratio of 15 means that, if a benchmark’s earnings total $100 when the earnings of each stock in the benchmark are added together, investors paying a 15 multiple of earnings are paying $1,500 (15 x $100) to own one share of each of the companies in the benchmark.

Right now, PE multiples are way above their historical norms. That’s got lots of analysts questioning whether stocks are overvalued and headed for a correction.

But what if PE ratios aren’t what they used to be?

If they’re different, how are they different? And based on where they are today, are they warning us or misleading us about the market?

These are important questions to ask. It’s even more important to understand why it’s time to question PE ratios and what they may be telling us about where the market’s headed.

Read on to understand what’s changed, and how what happens next will depend on President Trump’s policies…

Trump’s New Policy Has Everyone Talking – Here’s What You Have to Say

7 | By Shah Gilani

The responses to last week’s Why Trump’s Tax Plan is a Slap in the Face to the Middle Class were incredible and thought-provoking… Many of you agreed with my position, and many didn’t, but just about everyone had something useful and intelligent to say.

Today, I’ll address a few that left me eager to respond.

Read on to see if yours was one of the comments I singled out…

If You’re Not In, You Need to Get In Now – Here Are Three New Positions

0 | By Wall Street Insights and Indictments Staff

We finally crested that long-awaited psychological barrier – Dow 20,000. Even though we only passed 19,000 in November, Shah Gilani thinks markets will continue to climb – and faster than ever.

On this latest Varney & Co., Shah gives three rally stocks for investors to ride to the top….

To get these recommendations before you miss this rally, click to watch below.

Why Trump’s Tax Plan is a Slap in the Face to the Middle Class

35 | By Shah Gilani

Donald Trump’s promise to “Make America Great Again” can’t be done without fixing the inordinate and unfair tax burden on the middle class.

Lopsided tax policies that grant more wealth-generating opportunities and more tax relief to the wealthiest Americans, while the vanishing middle class pays higher taxes to make up for the government’s loss of income on the nation’s top income earners and wealth accumulators have killed the American Dream for tens of millions of the country’s hardest working citizens.

Here’s what Donald Trump’s promising, why it’s a slap in the face to the middle class, and what we all should demand of the new President and his administration of uber-rich cronies.

How Trump’s Supposed “Tax Cut” Could Actually Get Companies to Pay More

2 | By Shah Gilani

America’s soon-to-be 45th President, Donald J. Trump, wants to cut the federal income tax rate U.S. corporations pay from 35% to 15%.

While that appears to be a gift to companies who most Americans don’t believe pay their fair share of taxes, it really and truly isn’t.

What it would be is a gift to the federal government, and to you, and to me.

Hardly any U.S. corporations, big or small, pay the 35% federal income tax rate in the first place. In fact, the so-called statutory rate isn’t a flat 35%, it’s a progressive rate that goes from 15% up to 35% depending on how much pre-tax income (before credits) companies make.

The truth is most corporations have a federal effective tax rate (ETR) of about 14%, so making the national rate a flat 15% would be a win-win for the federal government and the average citizen.

Here’s why…

Readers’ Questions That I Couldn’t Help but Answer

1 | By Shah Gilani

The Consumer Financial Protection Bureau, attacked since before it was born and facing a court challenge to its structure, may be dealt a death blow by the incoming Trump administration.

As an important consumer protection agency and the first domino in a line of regulatory agencies about to be pushed over by the deregulatory army heading to Washington, the CFPB needs to survive for the public good and your investment future.

I’ll be showing you how fixing it and not killing it can make regulatory regimes across the U.S. more effective, less intrusive and profitable for you.

Let’s get to it.

Why Trump’s Deregulation Domino Effect Could Have a Huge Impact on Your Investment Future

8 | By Shah Gilani

The Consumer Financial Protection Bureau, attacked since before it was born and facing a court challenge to its structure, may be dealt a death blow by the incoming Trump administration.

As an important consumer protection agency and the first domino in a line of regulatory agencies about to be pushed over by the deregulatory army heading to Washington, the CFPB needs to survive for the public good and your investment future.

I’ll be showing you how fixing it and not killing it can make regulatory regimes across the U.S. more effective, less intrusive and profitable for you.

Here’s the good, the bad and the ugly about the CFPB…

Shah’s Bold Predictions Become Tomorrow’s Headlines… Here’s What He’s Saying Today

1 | By Wall Street Insights and Indictments Staff

After 35 years in the markets, Shah Gilani has developed a reputation for his bold predictions – and for being right about the global events that impact the markets.

In 2007, he called housing bubble and the near-collapse of the global economy months before anyone else.

In August 2015, he called the selloff triggered by China.

In January 2016, he called the global market meltdown.

And in June 2016, he predicted “Brexit.”

Now, he may sound like a broken record these days, with his talk of Dow 21K and his assessment of the incoming Trump administration.

But where most talking heads will say anything to get on TV, Shah sticks to his guns. And it makes his readers a lot of money.

If you haven’t been paying attention, now’s the time.

On this episode of Making Money, Shah shares the information you’ll want today to get ready for what happens next. Click to watch

Our Biggest New Year’s Fears… and Why We’ll Be Fine

1 | By Shah Gilani

If you want to know which direction the stock market is going, just look at it. It will tell you.

That’s why the best-known mantra about market direction is: The trend is your friend.

If the trend is up, you buy more stocks. If the trend is down, you take cover or sell stocks.

Since 2009, the trend has clearly been up, up, and away. In fact, since the bull broke free from the bear’s claws in March 2009, the S&P 500 is up 200%.

And since the election of Donald Trump, the grade of the uptrend has gotten steeper with markets setting new all-time higher highs.

Another Wall Street mantra is: The trend is your friend until the end when it bends.

And that’s the problem right now.

Investors looking at the long, long uptrend are scared the election of Donald Trump as America’s 45th president precipitated a final push higher and that now we’re facing the bend that ends up breaking the back of this old bull.

I laid out my bullish case and why markets can double in a few years here on Wednesday.

Today, I’ll point out the hurdles, sinkholes, and black swans out there we should worry about that could interrupt the market’s march higher…

To continue reading click here.