Archive for October, 2017

The Myth of Market Liquidity Will Make the ’87 Crash Look Like a Day at the Beach

3 | By Shah Gilani

We have spent the last two weeks dissecting the two major causes of the infamous 22% one-day drop in October 1987, and how those two causes are exponentially bigger factors in markets today.

Now, are you ready for the really bad news?

It’s about the liquidity myth, the story that says the market’s mechanical wheels are well greased.

It’s not just a myth… It’s a total lie.

Sure, there’s liquidity when markets go up, when it’s not needed. But when things go south – and they will – the myth will be revealed for what it is.

What most people believe about liquidity is a lie convened by conspiracy.

Here’s how the new portfolio insurance game and ETF arbitrage are going to unmask the frightening truth about market liquidity and seize the wheel of fortune

Shah’s Market Prediction Made Stuart Varney Need to Catch His Breath

0 | By Wall Street Insights and Indictments Staff

Microsoft Inc. (NASDAQ:MSFT), the current leader of the Fab 5, is hitting it out of the park. In fact, the tech sector has a lot going for it; Shah Gilani says the USD two-year low is going to help and that he is looking for double-digit growth.

On his latest appearance on Varney & Co., Shah discusses the heights these tech stocks could take the market to, what will happen if they do not get tax cuts, and shares his unfavorable opinion of General Electric Co. (NYSE:GE).

click now to watch

These People Are Ready to Pour Fuel on Burning Markets

5 | By Shah Gilani

Last week, I covered one of the major causes of the 1987 crash and how its modern counterpart is in an even bigger positions to tear down markets.

The other major cause of the 1987 crash was something called index arbitrage.

Today, that once-obscure market corner is insanely large, thanks to almost $4 trillion worth of ETFs.

Index arbitrage is simple, and it’s happening every second of every trading day. Most people just don’t know it.

Even worse is that it doesn’t always work. Sometimes it does the exact opposite of what it was built to do, like gravity suddenly levitating everything you think is grounded.

Here’s how ETFs and index arbitrage are going to pull the rug out from under the markets

The New Crash Will Be the Same as the Old Crash… but Worse

6 | By Shah Gilani

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.

Here’s how regulators fed the monster sleeping under passive investors’ beds

30 Years after the 1987 Crash, We’re Right Back Where We Started

7 | By Shah Gilani

On October 19th, 1987, the Dow Jones Industrials Average plummeted 22%. That one-day drop, the largest in U.S. history, became known as Black Monday.

The 30th anniversary of the ’87 crash is here tomorrow, and so is the potential for another huge drop.

In fact, another crash isn’t just possible, it’s probable.

Once again, seemingly smart Wall Street products, pregnant with potential unintended consequences and combined with regulatory ignorance and complicity, practically guarantee it.

Here’s what caused the crash in ’87, and the chilling truth about the one thing that’s different this time that will make the next crash worse

Now Banks Will Charge for Their Ineffective, Insider Research

1 | By Shah Gilani

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.

Here’s what Morgan Stanley reportedly wants to bill $2500 an hour for, and whether or not it’s worth the price tag… 

We’re Nearing Dow 23K, but That’s Nothing Compared to What’s Coming

0 | By Shah Gilani

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…

Your Cash Ain’t Nothin’ But Trash

11 | By Shah Gilani

Back in 1973, The Steve Miller Band song Your Cash Ain’t Nothin’ But Trash ended with, “But, I’m sure going to get me some more.”

That’s when cash was king.

Maybe not so much anymore.

These days some governments, academics, bankers, and tech innovators say cash is a relic. They say cash is destined for the trash bin.

A lot of people are frightened by the progress they’re making banning it, repackaging its bits into bytes, and even replacing it with cryptocurrencies that reside entirely in cyberspace.

If you’re stashing cash, you need to know what the arguments against it are all about and what’s going to replace it.

Here’s what you should do with your stash before it’s trash…

ICO’s Are a Speculator’s Paradise – Here’s How They Work

4 | By Shah Gilani

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.

Here are the glories and the dangers of getting involved with ICOs, and how to know if it’s right for you…

Markets Are Ready For a New Leader in Cybersecurity

0 | By Wall Street Insights and Indictments Staff

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