The new lending Disruptors are marching – make that rampaging – over the traditional fields and fortifications once commanded by banks.
Today I’m bringing you further proof of the powerful changes these Disruptors are driving, as well as the opportunities they are creating. And I’m also answering some pretty good questions readers posed in response to our recent reports on Lending Disruptors.
(By the way, we’re certainly not done talking about those Lending Disruptors. I’m going to come back on this subject with a few killer stock opportunities for us to play and profit from. But it’s time to move on to the next giant Disruptor that’s going to make us money. And the next Wall Street Insights & Indictments report will impact you, your wallet and even your health, so be sure to stay tuned.)
Today, however, let’s take one last careful look at Lending Disruptors.
When it comes to making money, there is one singular, sad truth.
Growing up, we weren’t taught a thing about it.
Why is that?
Of all the things we need to learn in order to achieve a decent standard of living, money, markets and investing is No. 1. As they say, money can’t buy happiness, but money is what makes a happy life and retirement possible.
But most people are ignorant about money.
I don’t want you to be most people.
That’s why today I’m asking for your top five questions about money: how it comes into being, what it really is and how to value it.
So, if you have any questions money, about stock markets and other trading venues or about investing and trading, I want you to send them to me right away.
I don’t say this enough. I’m thankful for you and the several hundred thousand other dedicated readers who make Insights & Indictments what it is. You’re smart and you’re brutally honest, and you add to every discussion we have. Selfishly, too, you give me new ideas and new perspectives on the facts and trends we’re tracking. Thank you for that.
So today I’m going to let you guys do the talking – or most of it.
Q [re: “Don’t Let Your Broker Make You Broke (Do This Instead)“]: Amen, Amen. Well done Shah. I’ve been there with a broker who lost over 90% of my meager account back in the mid 90s. I’ve been trading and actively managing my own accounts ever since then. I’ve had to learn a lot over these years, not always happy lessons. But, now I believe I am a lot wiser and my accounts grow, not shrink. A few years ago I switched over from being a frequent trader of a few issues to spreading out my risk more and by following your portfolios at Money Map Press as a Passport Club subscriber. I find your advice rational, sound and profitable. I’m very glad to have discovered you and your trading services. ~ Frank B.
A: Thank you, Frank. And congratulations on being a take-charge, it’s my money, I’m going to be the maker of my destiny, kind of hero.
Everything we do at Money Map Press is about empowering our members to take charge of their money and investment and trading decisions. There’s nothing, NOTHING, in this business that I’ve been doing successfully for over 30 years that can’t be taught and learned easily by any of you. Did I get it right the first time? No. But life’s a long song, and it’s a lot easier to dance to your own beat than the drumbeat of deadbeat brokers.
Q: As a former broker and someone who has traded options for decades, I can tell you most brokers can’t even tell you how even the simplest long call and put options work, much less spreads, collars, etc. … and they sure won’t take the time to explain them to you or place the trades if they did. It’s too time-consuming. It takes too much patience. They don’t make enough. Better to direct the money into loaded mutual funds. ~ fallingman
A: Fallingman, you’re a good man. Thank you for your honesty; and BTW, I always enjoy your comments.
Q [re: “Why Congress is Trying to Kill the CFTC“]: Bad idea, if you let any Government agency keep the money they penalize people or corporations, they will be trying to find a way to penalize everyone, that includes good hard working people/corporations. Than the agency will operate at a wasteful level with the top level executives using the money for themselves, becoming more corrupt then the people they were to regulate… ~ Robert P.
A: You’ve got valid points, Robert, very valid points. Thank you for pointing that out.
Let’s start today with the biggest bunch of incompetents on everyone’s mind…
The United States Congress.
Q [re: “The Truth about the Government Shutdown“]: The shut down is another sign that our democracy and our republic is in trouble! What happened to the era when our politicians put the welfare of our country ahead of their party affiliation? ~ Jim
A: This country was founded on political principles, and not all of them were ever aligned. The grossest political battle I believe I’ve ever studied was the one between George Washington and Thomas Jefferson. Jefferson underhandedly tried to discredit President Washington by paying others to disparage Washington in the then “press,” while feigning his disbelief that anyone would write that about America’s beloved president. NO, I’m not kidding. Know your history.
So, is any of this new? No not really. BUT what is new is the MONEY that drives it. It’s not about political agendas; it’s about getting into office to become rich. It is disgusting. At least our Founding Fathers had real beliefs and not just belief in their own financial futures.
A: Yes Jack, I do believe there is a way to profit from the mess in Washington and what Congress is facing this session. There are going to be stocks and asset classes knocked down because of this and others bid up because of it. When it all gets straightened out, presuming it does, there will be buying and shorting opportunities.
One area will be Treasuries. There’s something going on with the Treasury markets that no one is talking about. There’s a huge problem brewing, and it’s going to create major disruptions. I’ll reveal this in a special report next week for my Capital Wave Forecast subscribers, and we’ll be taking positions based on what’s unfolding. I’ll pass some of those thoughts on to you here after my subscribers get the details and we take our positions. But suffice it to say, if I’m right about what’s happening, major changes in capital markets are afoot.
BTW, at Cap Wave we’re already short oil and short one of the big banks after their run-up. Both of those trades will pan out quite nicely if we get anywhere close to a default.
Q: I haven’t voted for an incumbent in 35 years, which means some times I don’t get to vote for many future thieves. Haven’t missed but one election since 1952. At 86 the thing I fear most is losing my pension and getting a bunch of treasury certificates to sleep on. ~ Harold B.
A: You are a great American, Harold. You make your voice heard by voting, and that you haven’t voted for an incumbent in 35 years begs the question, in retrospect, is there no one you would have wanted to be in office for any good length of time? I’d really like to hear your thoughts, especially with hindsight.
As far as getting a bunch of treasury certs, good luck with that. You’d be better off with those than what most pensioners are likely to get… a swift kick in the you-know-what. Matt Tiabbi (he’s GREAT) wrote a bare-knuckles piece on what’s going on with America’s pension plans from his perch at Rolling Stone magazine. I suggest you and everyone read it. You’ll want to get some treasury certificates on account of the fact that anything in pension funds that isn’t nailed down is being stolen by Wall Street. At least the Treasury can keep printing its IOUs and make you feel like there’s something in your retirement nest.
Let’s jump right in with your comments and questions on Obamacare.
Q: Why hasn’t the Republican controlled House defunded Obamacare? The House controls the purse strings of the nation. ~ Lorne D.
A: There’s a long way to go in this war, and the next step will be on the funding side of the battlefield. That’s coming shortly, as in right after November.
Q: It has been my experience that every time the government sets out to reform something it is always in favor of special interests. The people always lose. People in the middle class pay the bill and the special interests people collect. ~ Pappy
A: “Same as it ever was…”
Q: Obamacare is a train wreck by design… it was never intended to work. It is merely an intermediate step towards a single payor system. When things get bad enough, the public will turn to the government to fix this mess and the government will offer up a single payor system as the solution. Your health care will then be totally controlled by the government…. it is all about control and power. ~ Len
A: While you may be right, there may be a backdoor agenda, the truth is I can’t figure it out. I just don’t understand why the attention isn’t put on the insurance companies greasing the system that benefits them, the doctors committing fraud… in conjunction with the aiding and abetting insurance companies, and why the public is always duped so readily into believing that they are the ones who have to pay the price.
As Pappy says above, it’s always in the interest of special interests. We know that, and it is the same as it ever was. But it’s up to US – the American people – to protest and revolt if we have to. And we do have to. It’s our health, our money, our right to choose, and our right to change the government. If we want a better healthcare system, we need to start by changing our government.
Still, you can say one good thing for Obamacare… it’s going to be one of the biggest single wealth creation opportunities in decades. We’re talking trillions in new spending. Not all companies will benefit – but a select few are primed for higher returns on a scale that was simply unimaginable before this legislation was passed. My friend and colleague Keith Fitz-Gerald just released a new investor report detailing exactly which stocks will do well when Obamacare gets rolling. Click here to see that.