Archive for June, 2018

Making Windfall Profits When Junk Bonds Fall from Grace

0 | By Shah Gilani

“It’s all good until it isn’t.”

That should be the mantra of investors in junk bonds and leveraged loans, especially in ETF products.

If it isn’t, it will be when the next downturn hits the rapidly expanding high-yield bond and loan universe.

And, while a shellacking won’t be pretty for investors who directly own high-yield paper, it’ll be downright ugly for investors who think they’re safer piling into high-yielding junk bond and leveraged loan ETF products.

Here’s what’s happening in high-yield land now, how bad it’s going to be for ETF investors, and how to turn the next high-yield crash into a mega windfall for yourself

The FDA’s Green Light Means Marijuana’s “Second Wave” Is Coming

1 | By Wall Street Insights and Indictments Staff

Two weeks ago, we told you about “Legal Marijuana’s Biggest Day Yet,” when the Canadian Senate passed a bill earlier this month legalizing the use of recreational marijuana, becoming the second nation aside from Uruguay to do so.

This news was huge. Not only did legalization open the doors for Canadians to spend up to $4.34 billion on legal cannabis products in 2019, which could propel cannabis companies’ stock prices to extraordinary highs, it also preceded a huge event that occurred just this past Monday:

The FDA approved the first cannabis-based drug on June 25, 2018.

This drug, commissioned by GW Pharmaceuticals plc (NasdaqGM:GWPH), called Epidiolex, is a twice-daily oral treatment used for patients with severe epilepsy.

Now, keep in mind, these cannabis-based drugs have nothing to do with the stuff people smoke or vape to get high. They have nothing to do with the recreational legalization in Canada, California, or any other state or country that will legalize recreational marijuana in the future. These drugs are non-“high” methods of treatment. In other words, patients do not experience any of the psychedelic properties that come with recreational marijuana. These drugs utilize the numerous medical benefits that come from the plant.

This industry for the clean, medical use of marijuana properties is a $1.112 trillion market, and Epidiolex’s approval is what will set the tone for the industry’s next steps.

Click here to read more about how this industry could take you from “zero to fortune” within the next 18 months alone

Facebook and Drones: What Could Go Wrong?

0 | By Wall Street Insights and Indictments Staff

In the past, a flattening of the yield curve has indicated a potential recession, but is Shah Gilani worried? Certainly not. A recession isn’t on the radar right now, but big banks should still keep their eyes peeled…

On this episode of Varney & Co., host Stuart Varney and Shah Gilani dive into why Facebook Inc. (NasdaqGS:FB) is cracking down on cryptocurrency ads, and why initial coin offerings (ICOs) could be the real culprit. Then, Facebook’s next move in their drone program may surprise you. Plus, The Boeing Co. (NYSE:BA)’s stellar new supersonic jet could revolutionize travel in the twenty-first century. Click here to watch

CEOs and Politics: It’s Not Their Call

0 | By Shah Gilani

The growing trend of investing based on ESG (Environmental, Social, and Governance) issues has created a dangerous problem. That trend has started a new movement of CEOs advancing their personal positions on ESG issues, supposedly on shareholders’ behalf.

Investors now tend to vote with their consciences by buying shares of companies that “do no evil,” or produce goods and services they believe meet ESG standards. On the flipside, they have the power to sell shares of companies whose management, products, or profitability they find distasteful.

To meet the increasing demand for company leaders to make their politics public, more and more CEOs are coming out in “support of” or “condemning” issues they have no real stake in.

CEOs advocating personal ESG opinions or advancing their political agendas on company time (especially while employing company assets in the process) is inappropriate and unwarranted. Worse, public company managers using company platforms to advance their opinions and politics is dividing shareholders (and the public at large) on political, social, and environmental issues.

Here’s why the quickly advancing “CEO-Statesmen” trend is taking the country down a twisted path that will lead us off a dangerous cliff

The Real Reason CEOs Want to Stop Earnings Guidance

0 | By Shah Gilani

The Wall Street Journal recently published an opinion piece without merit, titled “Short-Termism is Harming the Economy.” The piece was co-authored by Jamie Dimon, chairman and CEO of JPMorgan Chase & Co. (NYSE:JPM) and Warren Buffett, chairman of Berkshire Hathaway Inc. (NYSE:BRK-A).

The so-called “short-termism” they claim is harming the economy is earnings guidance from public company managers. But the truth is, CEOs’ and CFOs’ earnings guidance doesn’t affect America’s $19.4 trillion economy.

What the authors want to do away with isn’t just earnings guidance; it’s earnings reporting. Period.

That may not be investors’ best interests.

Here’s what they’re really pushing for, and what you can do to keep yourself safe in this mess…

The Dow’s Kicking This Company Out

0 | By Wall Street Insights and Indictments Staff

After being an integral part of the Dow Jones Industrial Average for 110 years, General Electric Co. (NYSE:GE) will be getting the boot next Tuesday. Its successor already has a market cap of over $67 billion, and it could shift the focus from an industrial economy to a technological one…

On this week’s episode of Varney & Co., host Stuart Varney and Shah Gilani talk about this week’s most recent dip – and whether or not now is the time to buy. Meanwhile, Germany’s leading automakers discuss their desire to abandon tariffs between the E.U. and the United States, but someone else is in charge of those decisions. Then, Shah reveals which stock – even in this volatile market – he thinks is the go-to for long-term. Click here to watch

What the FAANG Stocks Say About the Market

0 | By Shah Gilani

The so-called FAANG stocks – Facebook Inc. (NasdaqGS:FB), Inc. (NasdaqGS:AMZN), Apple Inc. (NasdaqGS:AAPL), Netflix Inc. (NasdaqGS:NFLX), and Alphabet Inc. (NasdaqGS:GOOGL) – mean more to the market than most investors realize.

As long as they’re going higher as a group, the market’s going to follow their lead.

But, if they start to go in different directions from each other – or, worse, if they start to slide together – the market’s headed for trouble, and possibly a sharp correction.

Click here to learn why…

The Truth About the Fiduciary Rule

0 | By Shah Gilani

Newsflash! According to the Wall Street Journal, “Merrill Lynch may reverse a ban on commissions in retirement accounts the firm manages, marking a potentially significant retreat for a leading advocate of fee-based accounts.”

Yes, the same Merrill Lynch that banned commissions in retirement accounts when the Labor Department’s “Fiduciary Rule” went into effect in April of 2016.

The same Merrill Lynch that fired up a media blitz touting its new policy and commitment to clients’ best interest, which was not, apparently, in Merrill’s best interest before. 

All that groundbreaking happened because the new fiduciary rule was meant to protect retirement savers from conflicted financial advice from brokers seeking commission income.

So, what happened? What’s making “Mother Merrill” contemplate a return to the good old days of churning out commissions, which, of course, no brokerage would ever do?

I’ll tell you, but you may not like the truth

Special Message: Legal Marijuana’s Biggest Day Yet

2 | By Wall Street Insights and Indictments Staff

Something groundbreaking just hit the news last week, and you may not have heard about it.

But, the Senate of Canada passed a bill late Thursday night legalizing recreational marijuana.

And once the House of Commons and Prime Minister Justin Trudeau do their part, Canadians could spend up to $4.34 billion on legal cannabis products in 2019, according to Deloitte.

Here’s why now is the best time to invest in marijuana stocks, and what you can look forward to in the coming months…