Archive for March, 2017

How to Profit from the Explosive Divorce of ETFs and Passive Investing

0 | By Shah Gilani

The marriage of ETFs and passive investing, the current hot trend everyone’s talking about, isn’t a match made in heaven.

In fact, friction between the two is so huge, a divorce could crash markets irreparably.

On their own, both buying into ETFs and investing passively make sense. But loading up passive investing portfolios with ETFs – especially benchmark and market index following ETFs, which are precisely what passive investing calls for – is the equivalent of rubbing two sticks together over a mountain of dry kindling.

I’ve given you the numbers on how big ETFs have become and how hot passive investing is getting. And, to the chagrin of ETF sponsors and regulators, I’ve unpacked the truth for you about how ETFs are created and destroyed and how the market professionals with the inside track on trading ETF shares alongside the underlying securities they’re made from are self-serving.

Now, I’ll tell you what you need to do to protect your passive portfolio, your actively managed portfolio, and your you-know-what when the fire gets lit…

Here’s What Will Spur the Next Big Crash

3 | By Shah Gilani

Exchange-traded funds (ETFs) are all about relationships, so the marriage of ETFs and passive investing looks perfectly fine on the surface. But frighteningly, the basis of their relationship and the reason they look like they pair well will actually be their downfall.

There’s the one thing you need to know about ETFs that you probably have no idea about.

I’m going to use a scary word to describe ETFs, although you won’t hear the word used when it comes to ETFs anywhere else. That’s because not many people understand that the word absolutely applies.

The people who know it’s the truth – the sponsors of ETFs, brokers, and regulators – don’t want you to ever think of “that” word when you think about ETFs.

ETFs are derivatives.

There, I’ve said it. Now you know.

Here’s everything that’s been kept from you about ETFs, and how sticking hundreds of billions of dollars-worth of them into passive investing accounts could crash the market…

This Popular Investing Strategy Will Bring the Next Big Crash

1 | By Shah Gilani

Exchange-traded funds (ETFs) are great. They’re packaged investment products that trade all day like stocks.

You can buy, sell and short ETFs that track:

  • all the major stock market indexes
  • any and every industry group
  • different investing styles
  • commodities like oil, gas, gold and silver
  • bonds
  • currencies
  • entire countries

Just about any asset class or portfolio product Wall Street thinks you want to trade or leverage your bets with – even inverse ETFs that go up when their underlying market indexes go down – they are all here.

ETFs are hot right now. So is passive investing.

They’re so hot together that they’re going to ignite the next market crash.

It’s not a matter of if, it’s a matter of when. And it has ETF sponsors and regulators worried to death.

Here’s how bad it will get, what you need to know to protect yourself, and how to make a ton of money from the coming crash…

This Disruptive Trend Could Soon Be Worth $86 Billion – Here’s How Investors Can Get in Right Now

2 | By Shah Gilani

Over the past two years we’ve talked a lot here about the burgeoning industry known as “Fintech,” a portmanteau of “financial technology,” or how financial transactions are moving to digital platforms.

While Fintech began as a way to describe how technology is being used to improve behind-the-scenes workings of financial institutions, this disruptive force is now changing everything from how we shop and how we bank to how we apply for credit – anything to do with money is ripe for Fintech disruption.

It’s even changing how we pay for dinner…

We’ve all been there – that awkward dance that occurs when the check comes. There are either too many credit cards, or not enough people with enough cash, or the restaurant refuses to split the bill, or no one can agree how to split it evenly…

In recent years, we’ve seen an explosion of smartphone apps that involve what’s known as peer-to-peer (or P2P) payments. These allow anyone to connect a card or a bank account to the app, and send payments instantaneously to anyone else on the app.

All of a sudden that awkward dinner bill – and thousands of situations just like it – get a whole lot easier.

Even social media giants have incorporated P2P payments into their interfaces. Any smartphone user with a credit card has at least five options to get a small sum to a peer almost instantly.

As of right now, none of these innovators have figured out how to monetize P2P payments. That’s going to become increasingly important as the marketplace grows – and as investors line up to profit from one of the market’s hottest trends.

Here’s what you need to know to get caught up, and the one company that’s ready to cash in on this explosive trend…

How to Prepare for Political Agendas, Tumbling Retail, and Unsettled Markets

2 | By Wall Street Insights and Indictments Staff

The markets are moving sideways as people wait for news on Trump’s healthcare showdown in Congress. We have a lot of rally riding on politics this week, but it’s clear what the reaction will be to either outcome.

On this latest appearance on Varney & Co., Shah Gilani was asked for his take on market uncertainty and what sectors will be hurt the most.

For everything you need to know about undecided markets, Sears Holdings Corp.’s (NASDAQ:SHLD) fall from grace, and why you should stay out of tech stocks… Click to watch now.

The Illusion of Bargain Retail Stocks – and How to Trade Them Now

2 | By Shah Gilani

Everyone loves a sale, unless that sale is an investment you bought at half-off and then continued to plummet to zero.

That’s already happened to a handful of once-promising retail stocks.

And they’re just the tip of an iceberg.

Not only are more name-brand retailers melting down and preparing to declare bankruptcy, the Real Estate Investment Trusts (REITs) that own and operate the malls they’re in are headed for the half-off sales bin.

But if you feel like a kid in a candy shop surrounded by these “bargains,” you’ve been duped.

Some retailers will declare bankruptcy and be buried once and for all. Some will declare bankruptcy and rise from the ashes. And some will rise from the ashes just to declare bankruptcy again.

Here’s the deal on retail stocks and REITs… and how to trade the dying, the living dead, and the comeback kids…

As Optimism Spreads, Here’s What We Can Expect Next

0 | By Wall Street Insights and Indictments Staff

On this latest episode of Varney & Co., Stuart Varney reminded his viewers that it was Shah who correctly predicted the upward trend in the markets. But what happens next may not be what you expect.

The Federal Reserve Bank’s meeting has a huge impact on markets and investor’s futures. In Shah’s eyes, there’s only one response to be anticipated. Shah also shares the one word he’ll be listening for that will give him caution… Click to watch

Today’s Fed Meeting: The Only Word That Matters is “Run”

5 | By Shah Gilani

When the Federal Reserve’s Federal Open Market Committee (FOMC) meeting is over today, whatever the determining body’s interest rate policy statement says about a rate hike (or how much they’ll hike, or how many hikes to expect, or whatever Fed Chair Janet Yellen says in her press conference after the two-day meeting’s over), there’s only one word that matters to investors.

That word is “run.”

Fed officials, including the Chair herself and a few Regional Fed Bank presidents, have gingerly been putting the word out there for months now.

In “Fed-speak”, the mumbo-jumbo they love to throw around, the word ‘run’ has a few meanings. There are four different ways they could potentially use this word to change the course of markets dramatically.

Here is everything you need to know about this one little word, and the avalanche of an effect it will have on your investments

This Antiquated $1.2 Trillion Industry is About to Experience a Major Disruption – Here’s How to Profit

0 | By Shah Gilani

Dealing with insurance companies is usually, if not always, frustrating and a waste of time that leaves one party (always the claimant) unsatisfied and upset. The truth is the entire insurance industry is in desperate need of a shake-up, for a lot of reasons, not just customer dissatisfaction.

Finally, there are companies willing to take the antiquated industry to the mat.

Of course, they’re tech disruptors. The new game is insurtech.

Insurtech – ‘insurance’ plus ‘technology’ – refers to technology solutions that lessen, not only the amount of money and time people have to spend dealing with insurance companies haggling over claims, but the time it takes to process everything related to every aspect of the insurance business.

The people and companies who are finally taking on the ancient multi- trillion-dollar behemoth are tearing into the startup field at record pace.

And older insurance companies have no clue what to do about it.

But there’s still time for you to avoid being left behind.

Today, I’ll cover what you need to know to get your feet wet, and how to dive into the deep end…

The Future of Retail Is Not What You Think

4 | By Shah Gilani

Everyone shops, but where and how we shop has changed in ways that none of us ever imagined.

What has changed with our shopping habits and our retail landscape, once dotted with familiar names and good stocks to own, is the investment horizon… The pros and cons of retail investing today.

It’s not as easy as you think.

Not all retailers that look like they’re headed for oblivion will die off for good. Some will seek bankruptcy and disappear, and some will come back to life, rising like a Phoenix from the ashes.

The truth is, there’s a ton of money to be made trading and investing in so-called retail stocks if you know what you’re doing.

Here’s what the landscape looks like right now and how to see over the horizon to make smart bets