Articles About Trading & Investing

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

0 | 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

0 | 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

5 | 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…

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.

Why I’m Optimistic About the Market in 2017 – and Why You Should Join Me

8 | By Wall Street Insights and Indictments Staff

Last week, in my Market Outlook for 2017, I summed up my expectations for the New Year by saying, “My outlook for 2017 is very positive.”

In the comments section at the end of the Outlook, reader James commented:

“It is going to be a year of turmoil. One shock after another. And you end up, “My outlook for 2017 is very positive …”Oh my! For me, it is: “BE PREPARED … for the worst!”

I agree with being prepared for the worst, because there are hurdles, sinkholes, and black swans out there. However there’s one gigantic market reason and three “Trump card” reasons why I’m optimistic about 2017 and beyond.

When I say gigantic, I mean the market can easily double, in a matter of years, not decades.

The reason is simple. But it’s not mainstream news, and only a few analysts realize what’s happening – which is why hardly anyone knows the truth about it.

Here are my simple, overlooked reasons that have me hopeful for the coming year…

To continue reading click here.

Market Outlook 2017: Where to Invest – and What to Avoid – in the New Year

13 | By Shah Gilani

As we head into 2017, markets are still rallying on the back of Donald Trump’s unlikely ascendance to the White House.

But, as with most rallies, the rising tide is not going to lift all boats; some will remain in choppy seas for the foreseeable future, while others will sink to the bottom.

While markets seem to favor a Trump presidency, there’s still plenty of uncertainty that’s giving investors pause.

Today, I’ll show you what I see coming down over the horizon as we approach 2017. I’ll show you which sectors are going to continue to benefit in the Donald Trump era, and which will be lost at sea.

Before I tell you which sectors are going to be good to your money, I want to make sure you know where not to invest.

So let’s get started by talking about what investments you should steer clear of in 2017… unless you want to make a couple of speculative bets that could make you a bundle.

How You Can Profit from Trump’s Energy Deregulation Agenda

1 | By Shah Gilani

The incoming Trump administration is widely expected to upend a lot of energy regulations put into place by President Obama, as well as rules that have been in place for decades.

Investors have already bid up energy stocks in anticipation of regulatory rollbacks.

But some of those bets look premature now that we see not all of President-elect Trump’s cabinet nominees are on the same page when it comes to the environment and climate change – two issues, however you look at them, driving U.S. energy policy.

Today, I’ll tell you how principal cabinet nominees generally look at the issues, and why U.S. energy and environmental policies can’t be effected in a vacuum.

Then, I’ll show you where the safe investments really are

Who to Watch in Trump’s Energy Deregulation Agenda

3 | By Shah Gilani

President-elect Donald Trump’s nominee for Energy Secretary, former Texas Governor Rick Perry, can’t singlehandedly make energy great again by deregulating the industry.

That’s because the U.S. Energy Department (DOE) isn’t the only government agency that oversees oil, gas, coal, wind, solar, and nuclear energy.

Making big investment bets on the future of energy production in the U.S. requires an understanding of which agencies really hold sway, who will head each department, how they will (or won’t) work together, and where paths of least resistance and black holes are.

Proponents of energy deregulation couldn’t believe it when Rick Perry, who led the country’s biggest energy producing state, was tapped to head the Energy Department.

That’s because in a 2011 presidential primary debate, Perry – then a candidate – vowed that if elected he would eliminate the Education Department, the Commerce Department and… He forgot what the third department was.

He was reminded by the moderator it was the Energy Department. Perry’s response was "Oops, I forgot." That embarrassing moment ended his 2012 presidential run.

Nominating the man who once vowed to eliminate the Energy Department to actually head it seems (to fans of energy deregulation) like a dream come true. Perhaps the message to the industry, they hope, is the Energy Department might be dismantled from within. That’s highly unlikely.

Here’s the three agencies that control energy, and who might be tasked with deregulating them…

When Markets Do the Unexpected, They Call Shah Gilani

0 | By Wall Street Insights and Indictments Staff

Varney & Co. host Stuart Varney gave Shah a call Tuesday morning to see if he’s standing by his original claim… Can the Dow really make it all the way to 21,000 before the end of the year?
To see how Shah responds, as well as get three picks you can get into before the year is done, click here to watch.

Trump Can Deregulate the Banks Without Crashing the Economy – Here’s How

7 | By Shah Gilani

The chance of the banking deregulatory locomotive – which is ready to leave Washington Station when Donald Trump is inaugurated – running off the tracks is high.

Very high.

If that happens, the train – including big banks, capital markets, consumer protections, and the whole American economy – could crash and burn.

America’s been taken down the financial services deregulation path many times before. Everything goes well for a while, and sometimes a good while… But eventually the embers of greed that fuel financial services gamers turns into a conflagration, consuming everything in sight.

I’ve got an easy, five-step approach to avoid catastrophe and make deregulation great again.

But before I show you, I want to talk about what usually goes wrong with deregulation juggernauts – why what can happen always happens.

And most importantly, what the American public must demand of our new President and his lieutenants to ensure we’re not headed off another cliff