Articles About Trading & Investing

Put the Market Into Perspective If You Want Real Profits

1 | By Shah Gilani

Right now, our market (in whatever terms you measure or define it) has a huge bid under it.

When traders refer to a “bid” under the market, they’re referring to buyers in the wings who are ready to buy something at the posted price or a slightly lower price.

Bidders in the wings can have orders to buy down with their brokers, poised at the ready on a trading platform, or even wait until they get a whim, watching for the right price or feeling to hit them.

What does this mean for the market as a whole? It will go a LOT higher.

It’s easy to make money if you see the big picture, if you can see which way the market is going. Let’s forget about individual stocks for now… there’s only so much success you can have in the stock market if you are unable to step back and see it for what it truly is.

In truth, the market’s been going up steadily since 2009. It will continue going up, and I can prove it by sharing what I understand of the big picture.

I’ll paint for you a stellar background, a clear middle ground, and a compelling foreground.

Here’s what you need to understand about the beauty of the market right now…

The New Government Sachs: The Latest Power Grab of the Big Bank Bigwigs

10 | By Shah Gilani

Unfortunately for America, the track record of government officials coming out of Goldman Sachs to run the Treasury Department and the National Economic Council – two favorite haunts of the bank’s former bigwigs – mirrors the unsavory track record of the bank itself.

It’s not that Goldman Sachs people don’t know how to make money or run the most powerful bank or country in the world… it’s the matter of how they do it that should frighten you.

There’s a slippery track record of Goldman alums who snaked their way around when they held government positions – that’s how the phrase Government Sachs was born.

It’s in your best interest to understand this history that looks doomed to repeat itself.

Here’s what the alums of Government Sachs greed mongers have done to advance their fortunes on the backs of Americans… and how the new class can do it again.

Trump’s Latest Order May Unleash America’s Big Banks – Here’s What You Need to Know

6 | By Shah Gilani

All of Donald Trump’s packaged campaign promises were wrapped in a mostly red, white and blue ribbon slogan: Make America Great Again.

Since taking office, President Trump has been unwrapping those promises in rapid-fire succession.

Last Friday, as part of his deregulation platform, the President signed an executive order calling for the Treasury Department to review the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, a 2300-page law that mandated extensive reforms of the financial industry.

Unfortunately, Making America Great Again has nothing to do with making great big banks bigger and more dangerous again.

When it comes to financial deregulation, we need to separate fake news about banks being held back from lending from the truth about their power, profits and potential to sink America again.

Here’s what you need to know…

Making Wall Street “Great” Again: The Fate of the Fiduciary Rule

4 | By Shah Gilani

New rules requiring advisors and brokers recommending investments in retirement accounts be held to a “fiduciary standard” are slated to go into effect on April 10, 2017.

But not if President Trump and his deregulation army have their way. They want to delay – and ultimately kill – the new rules.

I’ve written a lot recently about Trump’s deregulation agenda. And as you know, I’m a big proponent of targeted deregulation efforts that remove regulatory burdens while also leaving behind smart, effective rules that protect the American people.

When it comes to deregulation, it makes sense to cut endless pages of superfluous prose.

But throwing the baby out with the bathwater is worse than having a dirty monster child.

And the Labor Department’s pending “fiduciary” rules governing retirement accounts are a perfect example of a well-intentioned regulation in need of some pruning.

If you are looking to understand these new rules in simple terms – as well as the impending fight over whether or not they’ll actually be implemented – you’ve come to the right place.

Here’s everything you need to know about the ridiculously long rulebook, and the right way to fix it…

How to Turn a Profit from the Market’s Unknowns

3 | By Shah Gilani

Investing should be easy. It’s not.

Most investors don’t invest in what they know, and don’t know how to invest in the unknowns that scare them.

In 2007, nearly two out of three American adults (about 65%) invested in the stock market. Now, according to a 2016 Gallup poll, only 52% say they have money in the stock market. That matches the lowest rate in Gallup’s nineteen years of tracking ownership trends.

In recent years, American investors have been through the 2008 Financial Crisis and the subsequent Great Recession, then the May 2010 flash crash, the summer of 2015’s two-thousand point drop, and another 2000-point drop in January 2016.

All this wasn’t enough to scare investors out of the market – the Dow’s up more than 210% since its 2009 bear market lows.

But now we’re worried about Trump tweets, political fireworks, a divided America, and global uncertainties.

The truth is, there’s always some unknown out in the market to be scared of. But that doesn’t stop stocks from rallying. That’s why you need to stay in the game.

Here’s what you need to know about the unknowns we’re facing right now, and how to use them to your advantage…

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…

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

34 | 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.