Articles About Trading & Investing

Your Smartphone Helped Disrupt One of the Biggest Sectors Markets Have Ever Known – Here’s How

0 | By Shah Gilani

In 2015, online apparel sales took the number one spot in total online sales from the computer hardware sector (personal computers and tablets), which had been the undisputed online sales leader for a decade.

With the growth of online shopping and increasing online apparel sales starting to explode, it’s no wonder America’s bricks-and-mortar apparel retailers are closing stores across the country.

If these trends continue, and researchers expect them to, Wall Street analysts say we could see 50 retail bankruptcies in the next 12 to 24 months.

Here’s how retail was shaken to its core, and how I plan to work its fall from grace to my readers’ advantage…

How to Spin Retail Fool’s Gold into Real Profits

1 | By Shah Gilani

I first heard the phrase ‘retail ice age’ on Fox Business News’ Varney & Co. I don’t know if anchor Stuart Varney coined it, but it’s a pretty good assessment of the condition of bricks-and-mortar retail in America.

Sure, some down in the dumps retail stocks will bounce if the market keeps on rallying.

But beware – these stocks aren’t being bought because they’re value stocks. They aren’t even good bargains.

There’s a reason some of them are moving up, and it’s scary.

Here’s what turned the retail sector into fool’s gold, and the smartest way to make money on them…

The Dangerous Secret Behind Banks’ Earnings Reports

0 | By Shah Gilani

As banks report earnings this quarter, investors and the media seem anxious about their prospects.

They should be.

Even though JPMorgan Chase, Citigroup, and Wells Fargo beat analysts’ consensus estimates when they all reported yesterday, the headline numbers don’t tell the real story.

Banks themselves had steadily walked down analysts’ expectations for almost three weeks leading up to the start of earnings releases, so it shouldn’t have come as a surprise that they magically beat forecasts.

Still, all the bank’s stocks got hit while the market slump put pressure on them yesterday

Here’s what’s really going on with banks, why they were headed lower anyway, and how it spells danger for the economy…

The Most Dangerous Balance Sheet in the World

2 | By Shah Gilani

The Federal Reserve System, America’s private central bank, has a problem. Actually, make that two related problems:

  1. Their massively bloated balance sheet shows assets worth $4.5 trillion, and…
  2. In the Bank’s new era of “transparency” unwinding that balance sheet will disrupt markets.

The Fed has painted itself into a dangerous corner, and the smartest way to get themselves out of it is probably what they are least likely to do.

Here’s what markets can expect from Fed decisions, and how to play stock and bond markets the way insider Fed members will be instructed to play them…

Government Sachs May Actually Resurrect Glass-Steagall – Here’s Why

5 | By Shah Gilani

This past Wednesday, in a closed-door meeting between the director of President Trump’s National Economic Council and the Senate Banking Committee, the NEC’s Gary Cohn and Senator Elizabeth Warren apparently cozied up on the idea of separating commercial banking from investment banking.

Talk about strange bedfellows.

Gary Cohn, immediately prior to joining the Trump Administration, was president and COO of Goldman Sachs, one of the most powerful and profitable investment banks in history. He was, essentially, a general in the mega-bank oligarchy that many Americans believe directs the U.S. government.

Elizabeth Warren, on the other hand, was a Harvard Law professor who served as chair of the Congressional Oversight Panel for the Troubled Asset Relief Program (TARP), Assistant to the President and Special Advisor to the Secretary of the Treasury for the Consumer Financial Protection Bureau under President Barack Obama, was elected Senator of Massachusetts in 2012. She has arguably been the most vocal Big Bank basher in the past decade.

These polar opposites joining forces to dismantle the engine room of crony capitalism seems impossible.

So what’s really going on here?

Here’s what’s happening behind the scenes, what stake the major players have, and how you can make some money betting on the winners and losers…

The Answers You’ve Been Looking for, All in One Place

1 | By Shah Gilani

Over the past couple of weeks, I have been focusing on the growing issue between passive investing and bloated ETFs… and I’ve gotten some great questions from readers who want to know more.

When this crash comes, whether it’s a ‘flash crash’ or far more serious, I want my readers to be prepared to rake in serious profits while everyone else is in freefall. And I’m happy to take the time to address your specific questions if that means you will all be ready.

Here’s exactly what you want to know about the coming ETF crisis, mutual funds, IPOs, and more…

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…