Archive for March, 2014
Today, I want to tell you a story.
It’s a true story that also illustrates how the advice I often give to investors can help them reach their financial goals.
As you know, I have more than 30-years professional trading experience (I mean real big money trading). And folks often ask me, “How do I get started?”
In fact, several months ago, a young lady at the Fox studios in New York, who works there and with whom I had talked several times in the Green Room while a guest on Varney & Co., asked me that very question.
She is a person who never had an investing account and never made a trade, but because she was working at the Fox Business Network was surrounded by “the market.”
She had decided to overcome her fear about what she didn’t know and wanted to start investing in her future by learning how to invest in stocks. She wanted me to give her a stock recommendation.
But that’s not what I did.
Instead, I gave her some advice. And on her own, she turned my simple words of wisdom into a pretty big moneymaking opportunity for herself.
Let me show you how she did it…
Listen folks, I hate to tell you this but your chance for a comfortable retirement is falling fast!
Of course, we already know pension plans have been raided, depleted and “financially engineered” – AGAINST the laws that were supposed to protect you.
And if you think you’re protected because you’re a union worker, or municipal worker, or in some other job that you figured you’d put up with because you could retire well… WELL, those “protection” plans are all under attack, too.
Your benefits are being bargained away… and so are your cost of living increases and so are all the other promises you were made.
You need to wake up to your worst nightmare…
The Dow fell 200 points yesterday when Federal Reserve Chair Janet Yellen dared to suggest a timetable for raising interest rates.
But then they recovered and ended down only 114 points on the day.
Gee, that was a close one, the 1% sighed.
What most people don’t understand is that the 1% in America – and by the 1% I mean the really, truly rich who consistently make (not have) $5 million or more a year – have been the principal beneficiaries of the Fed’s zero interest rate policy for the past six years.
But they pale in comparison to the “Too Big To Fail” banks (many of which employ plenty of the aforementioned 1%) who are making record profits off the zero interest rate policy and the Fed’s “quantitative easing.”
Now, I don’t have a problem with anyone making a ton of money.
But I do have a problem with “redistribution” as the means by which wealth is transferred – including the transfer of wealth by “entitlement” programs from workers to unentitled lazy people. And especially when it’s transferred from America’s middle-class to the TBTF banks and the 1%.
That’s what the Fed’s zero interest rate policy is all about.
Do you want the truth about what’s really happening? Sure you do, that’s why you read Wall Street Insights and Indictments. So click here and I’ll tell you…
Last week I told you about “The Coming Curse of Zombie Foreclosures.”
I described how folks – who thought they were foreclosed on – are suddenly finding out they are actually still on the hook for mortgage payments, taxes, and all kinds of maintenance on abandoned homes.
What I didn’t tell you is that the nation’s largest mortgage-issuing bank – and the most profitable bank in 2013 – may have been bitten itself by the very zombie foreclosures it breeds.
And now it could be a dead bank walking…
If you think you’ve heard the last about foreclosures, think again.
There are a ton of them in the pipeline. Approximately 740,000 homes are currently somewhere in the foreclosure process.
In addition, banks own another 676,000 homes they’ve retained and not yet listed for sale, according to RealtyTrac.
And here’s the scary part…
More than 22% of those 676,000 homes (about 152,000 of them) are either vacant or abandoned, and neither banks nor servicers have taken title.
So why is this so worrisome? Let me show you…
So far today U.S. stocks aren’t celebrating the 5-year anniversary of the bull market, which technically-speaking began on March 9, 2009.
Will they rally by the end of the day, in a formal salute to moving onward and upwards?
If not today, then how about tomorrow, or the next day, or the next day?
Chances are better than good that stocks will go a lot higher.
But without a 10% correction since 2011, stocks are increasingly vulnerable at this juncture. The truth is there’s an intense battle about to be waged between bulls and bears.
And if you don’t see this big picture, you could be in for a rude awakening. Here’s why.
I’ve written about the dangers of relying on stockbrokers before. In fact, back in October, I warned you: “Don’t Let Your Broker Make You Broke (Do This Instead).”
You see, most stockbrokers aren’t traders, and they aren’t analysts, but salesmen. They usher clients into financial products with little regard for their individual financial situation or the broader markets.
That doesn’t make them bad people. In fact, I have friends who are stockbrokers, and they’re nice people.
These friends of mine are trustworthy and try hard to make their clients money. But at the same time, I would never let any of them handle my money, not even a small portion of it.
That’s why a new analysis published in yesterday’s Wall Street Journal really grabbed my attention…
According to the Journal, some stockbroker misdeeds — including financial crimes and other serious felonies — aren’t always disclosed to their brokerage house employers, or to the Financial Industry Regulatory Authority.
Here’s what you probably don’t know about the brokerage business… and yes, it could hurt you…
The markets are on the soft side this morning, meaning the benchmark indexes are down. But not significantly. After all, what’s half a percent, or three quarters of a percent, or a percent between bookend bulls?
Or for that matter, what’s a few percentage points or a double-digit percentage drop, if you’re hedged?
We’ll see how the rest of the day shapes up, or shaves down.
Is this anything to worry about, this little swoon?
Maybe, maybe not. Only time will tell. The thing about time is to make sure you’re not out of it when you need to be putting on defensive positions to protect your retirement, your savings and your future… and to be in positions that make money from swoons.
The reason I’m not worried is because, as I told you here last Monday, there are macro worries out there that are going to lean on the market. We know what they are. I identified some of the big ones.
That wasn’t a cryptic message.
It was a heads-up for you to take action.