Only, it wasn’t dead. Stocks came roaring back, and by mid-November, it looked like the panic had subsided. It looked like stocks wanted to recover and like they were making a strong push back up north.
Then, just when things looked brighter, stocks tanked again, just like they did in October.
And the major benchmarks tested (and mostly broke) their October lows.
Now, we’ve rallied again. Just like we did after the swoon in October.
As Yogi Berra said, “It’s like déjà vu all over again.”
It’s easy to get discouraged now, believe me. Christmas is right around the corner, and it feels like all you’re going to be doing is losing money. Nobody wants that.
You’re a reader of this e-letter for one reason: You know that Shah Gilani is one of the best in the biz, and that with his one-of-a-kind insight, you’ll never feel like an outsider again.
Over Shah’s 35+-year career, he’s run his own hedge fund, obtained a seat on the Chicago Board of Options Exchange (CBOE), and developed a proprietary strategy that amassed a fortune for himself and his clients – including many top-level Chicago and New York money and banking folks.
After leaving the world of Wall Street, Shah decided to create Wall Street Insights & Indictments, a place for everyday people to grab a front-row seat to hear from someone who’s been on the inside, and who’s ready to share his knowledge and moneymaking strategies to anyone who’s ready to listen.
We’re seeing a slight big tech rebound this morning, following yesterday’s big losses. However, the day is still young, and Shah Gilani says he’d like to see the Dow up at least a few hundred points before feeling optimistic.
On this episode of Varney & Co., host Stuart Varney asks Shah what he thinks of the FAANG stocks right now, namely Apple Inc. (NasdaqGS:AAPL), the culprit that’s leading the market sharply lower. Teetering around $179, the stock is certainly in bear market territory – well on its way to becoming an ideal buy.
Then, Stuart asks Shah if there are any stocks in one hot button sector that Shah would buy right now, and Shah answers with a vehement, “No.” See if you can spot where he drops this statement… Click here to watch.
The wild swings we see in the stock market aren’t the result of volatility.
Volatility results from the wild swings, not the other way around.
One thing investors don’t understand is, the VIX (the CBOE Volatility Index, sometimes called the market’s “fear gauge”) isn’t predictive. It isn’t a leading indicator; it isn’t telling us what the future holds. It’s misleading.
If you didn’t know that, chances are you may not understand what’s really causing wild market swings.
In a bear market such as what we’ve been experiencing for the past few weeks, it’s hard to justify buying into tech stocks. Even the biggest and baddest of them all – like first-ever $1 trillion company Apple Inc. (NasdaqGS:AAPL), which slipped below $200 a share – are feeling the heat.
On the latest episode of Varney & Co., Starbucks Corp. (NasdaqGS:SBUX) has announced that it’s laying off 5% of its global workforce in reflection of its steadily slowing sales. Shah Gilani said he’s never been impressed with the company, and that he’d short the stock – because it definitely go lower from here. Speaking of stocks that could drop lower, another Tesla Inc. (NasdaqGS:TSLA) executive has left the company. This could leave the already-wobbly company in a vulnerable state. Do you think that this could send the company’s stock lower? Click here to watch.