Just the other day, a friend came to me with a serious and specific question.
He’s been watching the markets, and the headlines, and wanted to know if he should “sell everything and go to cash.”
I laughed and asked: “Do you know something I don’t? Do you know, for sure, that the sky is falling?”
He doesn’t, of course. But I could tell from his comments that he was worried about several things – that China was about to implode, or could in the near future – and that he wanted to protect his investments.
Without missing a beat, I suggested he just “short” China and make a ton if it crashes.
This wasn’t an off-the-cuff quip. Investors who’ve followed me for a long time know that one of my core beliefs – a mantra, really – is that there’s always a place and a way to make money.
I believe you can find ways to make money in any kind of market – bull, bear or trendless. And I believe that because you can make money on both “sides” of the market – the long side and the short side.
That’s why I love trading and investing. It’s possible to make money when something… anything… everything… goes up.
And it’s also possible to make money when something… anything… everything… goes down.
That understanding is a big part of the reason I’ve been so successful through the years.
It’s a great day when a mega-profitable industry that sucks money out of us for services we can’t live without has to change how it lines its pockets.
And that day has come for insurance companies.
We’ve been talking at length about the new economic disruptors that are forcing change in everything from public policy to the financial markets.
And even the powerful insurance carriers aren’t immune.
Thanks to these Disruptors, you can you bring down your cost of health and auto insurance – benefitting the consumer side of your personal ledger.
You can also bolster the investment side of your ledger: Disruptors are upending the insurance industry, meaning you can make money by betting against insurance dinosaurs whose business models are under attack.
Remember the May 2010 “FlashCrash,” when the Dow Jones Industrial Average dropped more than 1,000 points in one day? Now, the British high-frequency trader who stands accused of contributing to the crash, NavinderSinghSarao, is fighting the U.S. extradition.
Should this sort of trading be illegal – or is the system the real problem? In his most recent Fox Business appearance, Shah revealed some of the bigger truths about high-frequency trading and answered even more of your biggest questions.
Someone I love very much – in fact, a family member I idolize – was recently diagnosed with Parkinson’s disease. We are all in shock, and some members of my family are very frightened.
But I made a decision. Instead of being frightened, I’m going on the attack. As transformational thinking lecturer (and “Est” founder) Werner Hans Erhard advocates, I’m going to be “cause in the matter.”
So I’ve given myself a mission… to do my part to help find a cure.
And it’s an opportune time…
Major diseases like Parkinson’s, Alzheimer’s and diabetes have a new enemy: research initiatives that attack them from fantastic new angles – yielding new protocols and medicines that can stop these maladies in their tracks or even reverse their chilling effects.
I’m not talking about “old school” drug protocols or research. I’m referring to the new healthcare and research Disruptors that I’ve been watching – and that are everywhere.
A powerful confluence of catalysts is making this possible, including new science, new technologies and even new policies at the U.S. Food and Drug Administration (FDA) – such as a groundbreaking “Fast Track” designation that slashes the time it takes to get new drugs into the hands of the patients who need them.
My resolve to help fight Parkinson’s – as well as the other terrible diseases I mentioned – has already gained me access to some rarefied circles. I’ve been asked to join the board of an extraordinary company whose partnering doctors head up the research units in their respective medical specialties at the top hospitals in the United States.
I’m also helping raise money for research – which includes making contributions myself.
The doctors I’m backing are leaning into the future in a big way. The head of the research-and-development company I’m involved with previously ran a giant pharmaceutical company. He’s now attacking the diseases his old pharma company treated with drugs by developing completely new protocols to stop diseases from spreading and eventually reverse the damage that they do.
I’m not permitted to reveal the name of the company I’m working with just yet.
But I will make this promise: Over time – as we crusade toward our goals of arresting the spread of the diseases we’re attacking and advance development of reversal protocols – I will be able to share some of what we’re learning, how trials are going and how our success will benefit everyone.
Eventually, there may even be ways for you or your loved ones to get into trials (we’re not there yet, but getting closer) by participating directly through new healthcare Disruptor tools like iPads and iPhones.
Meanwhile, we can invest in the Disruptor players, a move that will have dual benefits. It will not only aid the eventual defeat of these dreaded diseases, but it will allow us to profit from the full-frontal assault on them.
Shah says absolutely not. “All the bad news isn’t out yet,” Shah said yesterday on FoxBusiness. With the threat of a multibillion-dollar antitrust fine in Europe, Shah warned viewers that a tough road is still ahead for Google Inc. (Nasdaq: GOOG).
But that’s not all he shared with Varney & Co. viewers. With tax season now behind us, host Stuart Varney asked one of those questions on everyone’s minds right now: Should taxation be considered grand theft? Just view the video below to see how Shah answered that one…
The new lending Disruptors are marching – make that rampaging – over the traditional fields and fortifications once commanded by banks.
Today I’m bringing you further proof of the powerful changes these Disruptors are driving, as well as the opportunities they are creating. And I’m also answering some pretty good questions readers posed in response to our recent reports on Lending Disruptors.
(By the way, we’re certainly not done talking about those Lending Disruptors. I’m going to come back on this subject with a few killer stock opportunities for us to play and profit from. But it’s time to move on to the next giant Disruptor that’s going to make us money. And the next Wall Street Insights & Indictments report will impact you, your wallet and even your health, so be sure to stay tuned.)
Today, however, let’s take one last careful look at Lending Disruptors.
We’ve been talking here for the past two weeks about peer-to-peer lending – or P2P lending, as it is known – and have given you several ways to cash in on these new Lending Disruptors.
And if you’ve acted on our recommendations, you’re already making money.
In myApril 6 reporton the New Lenders, I recommended Goldman Sachs BDC Inc. (NYSE: GSBD) and Apollo Management Corp. (Nasdaq: AINV).
GSBD, which yields more than 8%, popped at the open of trading Monday. At its high price Monday morning, you were up almost 10% from where I recommended it only six trading days ago (an annualized gain of nearly 2,600%). And just two days after we told you about it, the widely read Investor’s Business Daily highlighted the Goldman business-development entity as one of two recent initial-public-offering (IPO) stocks “notable for their eye-catching earnings and sales growth in recent quarters.”
Triple-digit sales and profit gains is part of what caught my eye.
As for Apollo Management – it’s roughly flat from where I recommended it. But the stock has a juicy yield approaching 11%, which means you’re ahead of the game even before it delivers the gains I’m predicting.
The bottom line: Stick with these two investments. They’ll rise nicely in due course. In the meantime, you’re getting a better risk-adjusted yield than you’ll find in most other places.
That brings me to the market intelligence I want to share with you today.
Most of our talks here focus on opportunities – places and ways to make money.
But successful investing also involves managing risk – minimizing the losses you incur… or avoiding them altogether.
Thanks to Disruptors like Goldman and Apollo, the new lending market is one of the sexiest profit opportunities in the finance arena.
In our talks here over the last week or so, we’ve been focusing our attention on so-called “Disruptors” – the catalysts of change that are impacting everything we do.
And one particular point that I made underscores just how wide-ranging these Disruptor-driven changes really are.
As I told you all last week, Disruptors are already changing how we communicate (smartphones), how we date (Match.com, eHarmony), how we mate (Tinder… or so I’ve heard), what we eat (genetically modified and so-called “super foods”), how we work (Monster.com, Jobr), how we get heat, cooling and light (fracking), how we get around (Uber and Tesla), how we get where we’re going (GPS) – and where we stay once we get there (Airbnb).
And tucked behind each one of these changes is a major opportunity to make money – and often an opportunity to turn life to your own advantage.
Here’s just such an opportunity: In the area of lending and borrowing, there are ways to “fix” your credit – or to develop a credit score if you’ve never had one.
Several analysts have recently downgraded Apple Inc. (Nasdaq: AAPL) from “Buy” to “Hold.”Shah, on the other hand, told Fox Business watchers today that now is not the time to downplay Apple’s stock. Between smartphone sales and the just launched AppleWatch, Shah explains exactly why now is the time to buy the iDevice King and stick with it.
While chatting with host Charles Payne, Shah also took a thorough look one of the biggest energy deals in history – the acquisition of BG Group PLC (LON: BG) by Royal Dutch Shell PLC (NYSE ADR: RDS.A). What’s that mean for Shell – and for the energy market as a whole? Take a look to see what Shah thinks.