Archive for April, 2014
Last week I showed you the down and dirty basics of stock investing and how to make money in the markets from Square 1.
And based on the response I received, most of you are already looking for ways to build your net worth as soon as possible.
In fact, I got dozens of comments from folks who are truly learning how to “see money” in the markets-the first step in making financial freedom a reality.
Like Michael G., a single father, who is living on his Social Security benefits, but now has a little extra cash and wants to invest.
Michael wants to know if he should invest in physical silver (which he loves, but he’s worried about government interference) or social media behemoth Facebook-which is slowly creeping up in price.
Which is better: silver or Facebook?
It’s a great question Michael … and today I’m going to answer it. Plus, I’m going to tackle a whole slew of questions you’ve all sent me.
So let’s jump right into it …
I’m always getting emails from folks telling me how badly they want to make money in the markets.
The problem is that a good many of these readers confess that they are literally just getting started.
So right now, I’m going to begin at the beginning – and show you how to make money in the markets from square one.
Today is all about stocks.
In future columns, I’m going to talk about bonds. After that I’ll get into options, futures, and other derivatives (they’re easy).
And finally I’ll show you how they all – stocks, bonds, options, futures, and derivatives – come together every day.
When it’s all said and done, I promise you will understand everything about investing and marvel at how simple it all is.
You’ll know more than your friends – even more than most brokers. And you’ll start “seeing” the money in the markets.
So, let’s get started.
Here are the absolute basics, the things you need to know about stocks…
Our Too-Big-To-Fail banks are at it again…
The Volcker Rule is supposed to ban the banks from making hazardous and speculative trades.
But the big banks are begging for the chance to make the same kind of moves that got us into the 2008 global credit crisis, one of the worst in the modern world.
It’s like they never learned their lesson…
They’re even enlisting Congressional cronies to do their bidding.
One way or another TBTF banks are going to find a way to speculate us all into another crisis…
Here’s everything you need to know…
It’s earnings season. In fact it’s prime time for companies’ first-quarter earnings.
For company players the game is about trying to beat analysts’ estimates, to get your company’s stock to pop so you look better than your reflection.
But, the game is rigged.
What! Another rigged game on the purposely muddied fields where Wall Streeters play?
Yep. Another rigged game.
And like high-frequency trading (HFT) and so many other “institutionalized” games on the Street that are sucking the life out of other people’s dreams, it’s not illegal.
This is the norm…
A few weeks ago, I told you a story about a woman who took my advice and used it to overcome her fear of investing.
As it turns out, it was an incredibly popular column.
Reader Robert from Vancouver wrote:
Thanks Shah for trying to provide some financial education.
There is a real and urgent need to teach people at least the basics of investing, the economy, and business.
I wholeheartedly agree.
That’s why I wanted to come back and build on the advice I originally gave you.
You see, once you make a decision to start investing, the next step is to make a commitment to become successful.
And today I’m going to show you how to make that next step…
Something happened yesterday that is eye-opening, on several levels.
The Consumer Financial Protection Bureau (CFPB) and the Office of Comptroller of the Currency (OCC) slammed one of the nation’s biggest banks.
It turns out this bank, like several other financial giants, is a fraud machine.
Plop, plop, fizz, fizz (that’s me dropping my Alka-Seltzer) oh, what a surprise it is…
Only this latest scheme could have taken money directly from your pocket… and someone needs to be locked up.
No doubt you’ve heard about Michael Lewis’ new book, “Flash Boys.”
And, no doubt you’ve been hearing more than ever before about the subject of Lewis’ book, High Frequency Trading (HFT).
I ran to Barnes & Noble to buy the book the second I heard about it last week. They didn’t have any copies. So, I ordered it online, which was cheaper anyway.
It was waiting for me when I got home Saturday night. I finished it by Sunday morning. Although it’s only 271 pages, it took me 12 hours to read it because I wanted to savor every word and let it soak in.
Well, let me say this about high frequency trading and Michael Lewis’ book:
HFT is a bad juju and Lewis’ book is absolutely, positively, indisputably sheer genius.
Do you know Ally Financial Inc.?
You’ve no doubt seen their commercials. They used to be all over the tube hawking their high-yielding certificates of deposit. Now they’re all over the tube with their “no hidden fees” campaign.
I like the one where the woman is afraid to try new things because she’s had bad experiences before. Her mechanical dog sparks a fire when he drinks water and her trainer hooks her up to electrodes that zap her. I like these commercials; they’re funny.
But Ally isn’t funny.
It recently announced that it’s launching an initial public offering (IPO) of its stock at a price per share of $25 and $28. The shares will be offered by the U.S. Treasury as part of its planned exit of its investment in Ally during the subprime crisis in 2008.
I’ve heard some analyst say this could be a good deal for investors.
But I can’t believe the government wants to unleash this on the public.
I don’t know about you, but I’m ordering Michael Lewis’ new book “Flash Boys: A Wall Street Revolt” – and I’m ordering it today.
Of course, Michael Lewis is the author of two of the biggest selling books ever written about Wall Street: “Liar’s Poker” (1990), an autobiographical portrait of excessively greedy bond traders during the 1980s, and “The Big Short: Inside the Doomsday Machine”(2010),which chronicles the housing bubble that led to the Great Recession in 2007.
While those earlier books captured how Wall Street excesses can lead to devastating losses for individual investors, Lewis’ newest work aims to prove something even more damning – that the U.S. Stock market, “the most iconic market in global capitalism, is rigged.”
I’m looking forward to reading it.
And it looks like the FBI will be ordering a few copies, too.