Archive for September, 2017

Toys “R” Bust: How the Children’s Retailer Dug Its Own Grave

0 | By Shah Gilani

“I don’t want to grow up!” sang Toys “R” Us’ famous jingle from our TVs, year after year.

Unfortunately, that’s not how the world works, and neither kids nor retailers get to skip out on that reality.

Retailers don’t necessarily have to die, but plenty of them have been digging their own graves. The bankruptcy of Toys “R” Us wasn’t an accident or a surprise.

In a move one can justifiably call a suicide, the company choked itself to death with debt.

The demise of Toys “R” Us is a lesson for all retailers, and it’s a lesson for investors.

Here’s the truth about what pushed Toys “R” Us to the edge and how not growing up led to its bankruptcy

Why the “Retail Ice Age” Isn’t Just Amazon’s Fault

1 | By Wall Street Insights and Indictments Staff

Abercrombie & Fitch, American Apparel, CVS, JCPenney, Macy’s, and Sears are just some of the large retail brands forced to close stores this year. Earlier this week, Toys”R”Us announced its bankruptcy filing, and analysts predict 25% of all shopping malls will close within the next five years. As increasing numbers of people turn to some form of online shopping, it’s no surprise brick-and-mortar stores are suffering.
In his latest appearance on Varney & Co., Shah Gilani discusses the FOMC meeting, Amazon.Com Inc. (NASDAQ:AMZN), and the reasons behind the drastic down-turn in American retail. Amazon might be the figurehead for online shopping, but it’s not solely to blame and neither is online shopping in general. Shah details how mass production and overindulgence played key roles in this “ice age.”

Click now to watch…

A Deeper Look into the Fed’s Balancing Act Reveals What They’ll Announce Today

3 | By Shah Gilani

Here we go again. Another Fed meeting, another round of handwringing over how markets will react.

It doesn’t have to be that way. While there are three possible market reactions to what I expect the Fed to say and do, there are only two probable outcomes for markets.

And in the end, they’re the same.

This time around, the Fed’s going to address the two big issues everyone’s questioning:

  1. When are they going to raise rates again?
  2. When are they going to start reducing their balance sheet holdings?

Here’s what the Fed’s likely to do, and how markets will react…

What Equifax Was Lobbying Congress for Before the Hack Will Sicken You

9 | By Shah Gilani

What we know about Equifax being hacked is frightening.

What the public doesn’t know, however, is far more frightening. Equifax had been trying to limit its own financial exposure and culpability in the event of a hack.

Besides spending millions of dollars on lobbying, Equifax’s PAC (political action committee) has been doling out money to legislators who, in turn, write bills to protect the company from consumers suing if their data is stolen and from regulators who could investigate and fine the company in response to negligence.

In fact, the day Equifax reported it had been hacked, a House Financial Services panel was discussing a bill being pushed by Equifax to limit credit reporting companies’ liability if hacked.

Here’s what Equifax wanted Congressional protection from and what you need to do to protect yourself after this breach…

The Smart Way to Be a Cautious Bull

3 | By Shah Gilani

As a long-term investor, I’m a raging bull. I expect the markets to double in the next five years.

However, as a trader, I’m cautious up here and I’m skeptical of the new record highs stocks just made.

There’s a dozen reasons that point to markets continuing to climb for several more years. But markets don’t go up in a straight line, though they can have long upswings lasting years.

We just made new all-time highs again in this post-Irma “relief rally”, so it’s the perfect time to check to see whether there are any serious impediments to going a lot higher in the short haul.

Here’s the base case for stocks doubling in the long-term, and how to survive the short-term pitfalls in front of us

What’s Next for the Markets After Harvey and Irma

1 | By Wall Street Insights and Indictments Staff

The unfortunate natural disasters in Texas, Florida, and the Caribbean were thankfully not as devastating as many meteorologists had predicted.

That said, as Shah Gilani notes, “There is still a lot we don’t know” regarding the total impact of the storms on the economy and financial markets.

In his latest appearance on Varney & Co., Shah told viewers to expect the market to take some time to recover especially in a historically volatile month like September.

The market is delicate right now. News about total fatalities and property damage from the storms is still forthcoming, and that could shake up what is already an unpredictable month of trading. Florida and Texas are big players in the economy’s growth.

With all the uncertainty in the markets right now, Shah remains a long-term bull.

Click now to watch…

What to Do Ahead of One of the Most Powerful Atlantic Hurricanes on Record

3 | By Shah Gilani

Right now, Hurricane Irma, after devastating large and small islands up and down the Caribbean, and taking lives, is preparing to hit Florida in a matter of hours.

Hopefully, if you or your loved ones live in the path of the storm, you’ve hightailed it out of the storm’s path and are someplace dry and safe.

If you’re hunkered down or way out of the way on the other side of the country, now is a good time to consider the impact of this massive storm on your investments.

I’m not just talking about a home or vacation house that might be in harm’s way – but all of your investments.

No matter where you live, and no matter the size of your portfolio, Irma is about to have an outsized impact on your bottom line.

Let me show you what I mean

Every Cautious Investor Should Make These Two Changes to Their Strategy

0 | By Wall Street Insights and Indictments Staff

The markets have climbed substantially since the election, but a lot of that climb was strapped to investor sentiment that believed there would be tax reform. In the absence of progress, it looks like that meteoric rise is slowing down.

During his most recent appearance on Varney & Co., Shah Gilani shared his tactics for being cautious even when you see the market bouncing back. He also discusses the long-term effects of Hurricanes Harvey and Irma, and just how long it will take until the country recovers.

Click now to watch…

Uber Wrecked Their IPO Three Years Ago

1 | By Shah Gilani

Uber Technologies Inc., the smartphone-based cab hailing company that operates in 633 cities worldwide, announced this week it might be going public as early as 2019.

That gives the beleaguered private company, which has a reported $50 billion valuation, about a year and a half to get its house in order… And to hopefully sell shares to the public at a significantly higher valuation.

Good luck with that.

The once high-flying unicorn has made an ass out of itself and lost $3 billion last year. This company has probably blown its chances of selling itself to the public for a crazy valuation that it could have commanded years ago.

Here’s how Uber blew it, what they should have done instead, and what you should do when the company finally does offer itself to the public…