Archive for November, 2016

Your Perfectly Diversified Portfolio Could Be in Danger – Here’s Why

1 | By Shah Gilani

Over the past two weeks, I’ve explained how automated investment services, or “robo-advisors,” are generally wired.

Today, I’m tackling what the real problems are with robo-advisory services – who should use them, and how not to get crushed when they go haywire.

Depending on what theories and math robo-advisors are wired for, they construct a “personalized” portfolio based on forms you fill out online, and they automatically rebalance your portfolio when threshold weightings of positions in your portfolio get out of balance.

And that’s precisely where the issues begin…

Here’s How Donald Trump Can Keep Markets Rallying

0 | By Wall Street Insights and Indictments Staff

Everyone was surprised to see how quickly the markets rallied after the election, and it’s even more surprising that we’re still riding that high. During his recent appearance on Making Money, Shah outlined how Trump can keep the skies looking blue.

Click here

What It Would Take to Push Markets All the Way to 21k

0 | By Wall Street Insights and Indictments Staff

Now that Dow 20,000 is right on the horizon, Varney & Co. host Stuart Varney asked Shah what it would take to get even further. Considering the trillions of dollars on the sidelines, the lack of resistance to the upside, and how a Trump presidency will affect the economy… Shah says 21k is attainable.

He also talked about Twitter’s “internal mistake” and how it will impact the stock, and Apple’s desperate return to Black Friday.

To see the full video, just click the link below

The Most Important Investing Lesson Robo-Advisories Can Teach Us

3 | By Shah Gilani

There are so many things we can learn about investing from automated investment services, otherwise known as robo-advisors, that it staggers the mind.

After all, they’re computer-driven platforms imbued with advanced Sharpe, mean variance, and Modern Portfolio Theory that produce “efficient frontier” portfolios, and whose proprietary algorithms rebalance your portfolio based on threshold continuums and your personal dreams and goals.

Oh yeah, they’re complicated.

But there’s one lesson (one you were never taught) you can learn from taking a good, long look at how these robo-advisory services construct and rebalance your personal portfolio.

Because as we’re driven toward a future programmed by algorithms and dominated by Fintech innovations, it’s important to stop and take stock of some of the basic assumptions that will inform that future.

As you’ll see, there’s one fundamental assumption – upon which millions of portfolios have been built – that’s simply dead wrong.

Here it is…

To continue reading click here.

Behind the Curtain: How Robo-Advisors Really Manage Your Money

2 | By Shah Gilani

Automated investment services – more commonly known as robo-advisory accounts – are relatively simple to understand, on the surface at least.

We talked about this last week – robo-advisories were created by millennials in response to the dot-com collapse, the financial crisis, and traditional fee-based advisory services.

But all is not what it seems. And if you dare dig into how they actually work, you’d be surprised how complex they are.

Today, I want to show you how these services actually automate portfolio selection and perform rebalancing acts, and help you understand some of the complex portfolio management theories providers have to use.

Because what you don’t know can really hurt you – and you should know how your money is being managed.

Let me break it down for you…

To continue reading click here.

Everything You Need to Know About This New Fintech Disruptor – Before You Make a Move

1 | By Shah Gilani

I’ve been telling you for most of 2016 that financial technology, or Fintech, is changing the investing and trading landscape.

One of the most profound Fintech disruptors is the creation of automated investment services, more commonly known as “robo-advisors.”

The idea of automating investment services was the brainchild of a handful of millennial-focused Fintech entrepreneurs, most of whom are millennials themselves.

With their general aversion to traditional fee-based advisory services, their experience of living through the tech-wreck of 2000 and the 2008 market shellacking, their comfort and trust in computers and technology, millennials (the generation born or coming of age between 1982 and 2000) were presumed to be the perfect audience for robo-advisory services.

Sure enough, assets under management by robots (and their human helpers) exploded into the billions this year.

But millennials aren’t the only group who are enamored with these low cost, automated investment services. They’re catching on with lots of investors.

If you’re not one of those investors, today, I’m going show you how robo-advisors work and what they cost, as well as the pitfalls associated with this newfangled investing horizon.

Let’s get started…

To continue reading click here.

How Hedge Funds Bet the Election, What They’ll Do Next, and How You Can Profit

2 | By Shah Gilani

I’ve been telling you for weeks that hedge funds have been sucking wind, partly due to too often plowing into the same trades then exiting them too late.

But I’ve also been telling you that they’re ready for a comeback…

And the election of Donald Trump just proved it. You see, many hedge funds actually played the election close to perfection.

Whether they’re able to continue their recent burst of positive performance doesn’t matter to us, unless of course you’re in any of those floundering funds.

What matters to us is what positions they’re into now and when they’ll unwind them.

Because knowing what we know about their positions we can front-run their exiting strategies by putting on smart risk/reward reversal trades.

Here’s what they did, what they’re going to do, and how to front-run them before they rush for the exit doors.

To continue reading click here.

Shah Talks Dow 19K and the Latest Plan to Break Up the TBTF Banks

1 | By Wall Street Insights and Indictments Staff

Just a few weeks ago, 19,000 on the Dow seemed impossible – but the market continues to surprise post-election.

Speaking on a recent episode of Varney & Co.,Shah told viewers that 19k that is well within reach – and it could come sooner than many think…

Shah also shared his thoughts on a newly proposed plan to break up “Too Big to Fail” banks.

Minnesota Fed President Neel Kashkari’s plan involves increasing the financial stability requirements that would naturally lead to smaller banks with less risky balance sheets.

To hear what Shah has to say about the plan, along with a host of other topics, Click here.

How to Pick the Infrastructure Winners in a “Trumped Up” Market

8 | By Shah Gilani

President Calvin Coolidge famously said, “The chief business of the American people is business.”

Thank goodness we’re getting back to that.

President-elect Donald Trump, a successful businessman himself, says rebuilding America’s infrastructure is his number one business priority.

That’s great for America… and great for investors betting on infrastructure businesses.

Over the past three days infrastructure stocks have been on a tear.

They’ve been bought up at a furious pace, propelling indexes higher and pushing the Dow Jones Industrials Average to all-time record highs.

And it’s not too late to get in on the action…

To continue reading click here.

Trump’s Triumph Gives Us One Huge Investing Opportunity

5 | By Shah Gilani

The stock market was supposed to have a major beef with Donald Trump’s election.

Now that Mr. Trump is the president-elect, everyone’s asking “Where’s the beef?”

That famous quip comes from a 1984 Wendy’s commercial assailing claims that Big Macs and Whoppers had meatier patties. That same year, Walter Mondale used it to mock Gary Hart’s proposed agenda, and later used it against Ronald Reagan, who eventually won a second term.

The answer today, as far as stocks are concerned, is there looks to be a lot of red meat in the economic future president-elect Trump’s proposing.

And as U.S. investors start to get it, they’re rotating into select stocks instead of shedding positions as everyone expected.

It’s too early to tell what investors are or aren’t going to fully embrace, since we don’t know who president-elect Trump will surround himself with and what exactly his agenda will be.

But that doesn’t mean investors should stand by with their wait-and-see glasses on.

There’s one opportunity in our future that’s a no-brainer – because it’s the central pillar of Donald Trump’s economic plan.

Here’s what I’m talking about…

To continue reading click here.