The mechanical causes of the October 19, 1987 crash, which wiped 22% off the value of the Dow Jones Industrials Average in a day, are now a frighteningly large part of the fabric of equity markets in the U.S.
So is something else that didn’t exist in 1987.
Something that, at the exact worst moment in the trajectory of a crash, will rip the heart of liquidity out of the market without blinking an eye.
In fact, the very nature of the crash will target the people who think they are the safest.
The latest version of regulatory and Wall Street whack-a-mole is, as usual, going to miss the target.
In the “never-ending battle for truth, justice, and the American way” – and, oh yeah, profits – big investment and trading banks announced a major new change. All the big banks you know and love are about to charge the money managers they execute trades for, and service in ways most of you have no idea, an arm and a leg for research.
It doesn’t matter if the research is ineffective, which most of it is. It doesn’t matter if it’s valuable insider-type information, which some of it sometimes is. Banks are going to charge a pretty penny for it.
Why? Because it’s worth it, darn it.
And because new regulatory rules will force them to hold their hands out.
Nothing stops these markets. If you look away, you’re going to miss something big.
The Dow is growing closer to 23,000 points by the day, just as Shah predicted. Anyone who listened to the bears and sold missed out on a ton of money.
On this week’s Varney & Co., Shah is so confident in the market that he’s paying very little attention to the Dow at 23,000. He has his sights on bigger, loftier goals. He has similar confidence in a couple of other big players in the markets, namely Amazon.Com Inc. (NASDAQ:AMZN) and Apple Inc. (NASDAQ:AAPL).
Amazon is in “advanced talks” with a company called Phrame that makes special license plates, which would allow Amazon to make secured deliveries to your car. As Shah puts it: “Amazon is once again ahead of everyone else.” Watch the video to find out how…
If you want a shot at making fantastic gains, there’s a form of investing that you should consider if you haven’t already.
An initial coin offering, or an ICO, differs from investing in an initial public offering (IPO) in a few major ways.
For one thing, you probably can’t get insider stock with an IPO. But with ICO, you are absolutely an insider. With an ICO, it doesn’t matter what the “project” you’re investing in does, makes, or sells. It’s not a company, and it doesn’t exist in any traditional entity form.
And when it comes to the value of the new-fangled cryptocurrency coins or “tokens” you get for your investment, their value can rise exponentially.
If your cybersecurity tech has any signs of weakness, someone will find it because someone is always looking. That’s unfortunate for companies like Yahoo, who revealed this week that all three billion of its users’ data had been breached back in 2013. None of the major companies have been able to figure out just how to ensure that their customers’ data is safe, and the downward trend of the cyber security market is indicative of that.
This week on Varney & Co., Shah Gilani has a busy, lightning-round appearance as the panel of experts discusses everything from cybersecurity to electric vehicles. Though the topics are varied, Shah is certain of one thing: Technology is king.
Also this week, Alphabet Inc. (NASDAQ: GOOG) debuted new products in a keynote presentation. The most intriguing is the Google Home portfolio that was created to take on Amazon (NASDAQ: AMZN) in the burgeoning smart-home markets. Shah notes Google’s uphill battle as Amazon has an early foothold in the market, but he’s sure the company with the best tech will win.
You can be late to a market or industry, but you better have the products to back it up. To get the final word on all this and more, click now to watch…
Bitcoin, the well-known and most widely “circulated” cryptocurrency, is grabbing a lot of attention lately.
Here’s the thing about Bitcoin: It’s not an investment. It’s merely a tradable thing, that’s all. The same goes for all the other wannabe legal tender cryptocurrencies.
The new attention is coming from the fact that they’ve all soared in price… Or value, or whatever they calculate their worth against.
Goldman Sachs Group, Inc. (NYSE:GS), arguably the most elite and most profitable trading shop, investment bank, and government puppet-master in Wall Street’s checkered history, is weighing setting up a trading operation and sales desk dedicated to bitcoin and other cryptocurrencies.
But that flies in the face of what other heavy-hitters are saying. Jamie Dimon, CEO of JPMorgan Chase & Co. (NYSE:JPM), the largest bank in the United States with its own formidable global trading operations, said only two weeks ago that Bitcoin was a “fraud” and he’d fire any employee who traded it for being “stupid.”
So, what gives?
It’s simple really. Bitcoin isn’t an investment-grade anything. It’s a tradable “instrument” like gold, or carbon credits, or tulips. The reality is that both Goldman and JPMorgan are correct, but only if you understand the nuance of this brand new situation.
If the president’s new tax-reform plan goes through, big companies like J.B. Hunt, Ulta Beauty, and PacWest Bancorp are going to be big winners. It’s clear how the new plan benefits big companies, but not so clear is how it will benefit you.
That’s where Shah comes in. In his latest appearance on Making Money with Charles Payne, Shah Gilani tells how the public can make money in the Russell 2000 small-cap index and even on Microsoft. He also notes that any company that currently has a high tax rate will enjoy a substantial decrease with this new plan. Watch the video to find out how…
While the country slowly starts to recover from numerous natural disasters, there was no chance to catch our collective breath. There was a Federal Open Market Committee meeting. There are threats abroad. There have been plenty of promises coming from the Administration.
The month is coming to an end, but it doesn’t appear as though anything is slowing down. With that said, I figured now would be a good time to do another Q&A.
We really appreciate all of our readers and subscribers here at Money Map Press. We especially love hearing from you, so don’t be afraid to comment on any of the articles. And we especially love hearing if you find any success from acting on our expertise, so make sure to keep us in the loop. We want to hear it all.
I found some incredible questions in the comments section and in the emails my readers send, and some of them I needed to answer. From which financials to invest in, to where you should be placing your stops, to the market’s personality, there is a lot to touch on.