Today marks the last day of the October 2018, the month that saw the worst market conditions since 2012. The Dow tumbled nearly 1,000 points halfway through the month, and despite overall positive earnings, stocks were hammered again and again. But finally, things seem to be settling down… That is, until mid-term elections.
On the latest installment of Varney & Co., Shah Gilani, despite remaining bullish throughout this “Red October,” says that there’s still a lot of nervousness that the market has yet to recover from. But, as always, situations like these that present investors with ideal buying opportunities – now’s the time to bargain hunt. Then, later on the show, Shah reveals which tech stock he’s ready to get back into, despite its controversy. Click here to watch…
It was easy to predict which way those stocks were going simply by following their fundamentals. They all enjoyed consistent, stellar growth in revenues and net profits. Fantastic fundamentals drove their stock prices higher and higher, for years.
And they drove benchmark indexes like the Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite higher and higher.
That’s because those big-capitalization companies got a lot bigger as their stock prices soared.
Capitalization means market value and is calculated simply by multiplying the number of shares a company has outstanding times the price of a share.
For example, Apple has 4.83 billion shares outstanding. Multiply those by its share price, $213, and you get a capitalization or market value of $1.03 trillion.
As the FAANG stocks’ shares climbed ever higher, their capitalization grew.
That’s important to understand. As their capitalization, and share price in some market benchmarks, increases, the weight they carry in the benchmarks they’re in increases.
In other words, they are so big that they influence levels of the Dow, the S&P 500 and the Nasdaq Composite.
Though on the surface it seems like a good investment, International Business Machines Corp. (NYSE:IBM)’s recent announcement to purchase the cloud computing firm, Red Hat, is raising flags of management issues and potential conflicts could arise therein. Only time will tell if this acquisition is a wise one, or if it’s a mark of desperation on IBM.
Then, on this episode of Varney & Co., Shah Gilani and host Stuart Varney dive into if Amazon.com Inc. (NasdaqGS:AMZN)’s current dip is enough for Shah to go all-in. But, Shah says, with mid-term elections closing in, the already-wobbling market could have further to fall – providing an ample buying opportunity. Later, Shah reveals which tech titan stocks investors would be smart to jump on now… Click here to watch…
If you’re with me at the Black Diamond Conference in beautiful Carlsbad, CA, or watching with us via the live webinar, I hope you’re finding these presentations help – and profitable.
But if you’re not with us right now, don’t worry. There’s still a chance for you to see what my colleagues and I – Michael A. Robinson, Tom Gentile, and Rick Rule, to name a few – are talking about this week. My team and I will tell you all about it next week.
In the meantime, I have a special treat for you.
You’ve been hearing the words “volatility,” or “crash,” or “catastrophe” so often that it’s probably starting to get old. That, or worry you more. Either makes sense.
But today, I’m going to share with you something I usually only reserve for readers of my elite trading research service, Zenith Trading Circle. And I don’t do this often, folks.
Today, I’m going to give you a peek inside Zenith.
Fox News published a “breaking” story yesterday morning.
And if you’ve been a reader of Wall Street Insights & Indictments for some time, you know that Shah Gilani and the Research Team loves to tear articles apart and give you the real truth.
Everyone loves a good “they got it wrong” story.
But this time they got it right.
The headline was “Politicians’ deceitful promise that nobody has been paying attention to,” with an eye toward underfunded pension liabilities and the lies we’ve been fed that everything’s going to be “okay.”
Pensions for hard-working Americans could be cut up to 50%. The markets’ downward turn this week will mark their third straight week of downside.
And even though pension debt has amassed to $6 trillion, roughly a third of the entire U.S. economy, this is probably the first time you’re hearing about it.
Yesterday, the Dow closed 608.01 points down. On October 18, it fell 266.11 points. October 11 saw a 465.56 drop, and the day before that saw an 842.99-point fall.
These are just small cracks of a market on the brink of something much, much worse.
Think of the old, boarded-up houses you see that sometimes line the streets of neglected neighborhoods. Those houses, once thriving and full of life from the family that dwelled within, are now only echoes of what they once were.
Dilapidated siding, shattered windows, a cracking, crumbling foundation. A sad sight to behold.
You’ve seen it happening – despite stocks seeing some good numbers, the market has turned tail and dragged these otherwise positive profits back down. We’re in a bit of a bearish lull for sure, and investors may be getting antsy.
On this week’s episode of Varney & Co., the panel of experts discuss Target Corp. (NYSE:TGT) making the right move to compete with Amazon.com Inc. (NasdaqGS:AMZN). Quick, efficient deliverability of products, of course, has been a key player in the appeal of using Amazon over other online marketplaces – and Target recently announced their enabling of free two-day shipping. And with the holidays only weeks away, this could be a game changer for Target…
Then, despite a bearish turn, Shah Gilani tells host Stuart Varney exactly which stock investors should put their money in. In the words of Shah himself, “You can’t not buy it.” What do you think? Click here to watch…
This wave was triggered by the first ever FDA-approved cannabis-based drug, Epidiolex, which was created by GW Pharmaceuticals plc (NasdaqGM:GWPH).
In short, this green light from the government could be the initial spark to light the fire for the next wave of “marijuana millionaires.”
But the good news is that the profit potential doesn’t end there.
If you’ve had any doubts or qualms with the marijuana industry, if you want to learn more about it before jumping in, or if you’re not sure how to break into such a lucrative market… We have a huge opportunity for you.
Last week Uber kind of, sort of announced it was going to go public in early 2019 at a valuation of about $120 billion.
It wasn’t Uber directly saying that. It was a Wall Street Journal story that more than likely came from sources at the company.
We can assume the news really came from Uber, because the $120 billion valuation number was based on talks Uber had with potential lead underwriters The Goldman Sachs Group Inc. (NYSE:GS) and Morgan Stanley (NYSE:MS). And they wouldn’t have leaked that to the Journal. That number would have had to come from Uber itself.
This week the Securities and Exchange Commission unanimously ruled against the New York Stock Exchange and NASDAQ Inc. in a dispute over both exchanges’ abilities to increase market-data fees.
The exchanges have consistently raised the fees they charge mutual funds, brokers, traders, and especially high-frequency trading desks for access to essential market-data and back-door access to data no one should be privy to.
It’s a longshot, but the newly muscular SEC, headed by Jay Clayton, starting with this ruling, could begin to reverse years of bad decisions by the Commission.
Those bad decisions include allowing exchanges to sell access to almost everyone’s buy and sell orders to trading desks who pay millions of dollars a year to essentially trade on inside information the exchanges sell them.
Imagine for a moment if we, as a global community, ran out of 20% of our oil supply.
Madness would ensue. Wars would break out over the last of this valuable resource and economies would crumble as prices rose steadily higher.
Now, imagine if it wasn’t oil, but copper, steel, or iron.
Pretty much the same thing. Industries would pay top dollar to get their hands on the remaining supply of these precious commodities.
It’s generally believed that this crisis is still a safe distance from affecting us, which is why you haven’t heard breaking news on it. The World Nuclear Association (WNA) has predicted the shortage to happen in 2020 at the earliest.
20% of the world’s uranium supply is on the brink of vanishing. This is the metal that keeps our power grid stable, guarantees our military supremacy on land, sea, air, and even outer space, and contributes to medical breakthroughs that save millions of lives.