Articles About Trading & Investing

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… 

Your Cash Ain’t Nothin’ But Trash

6 | 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…

These Two Rules for Trading Bitcoin Could Save Your Wallet

11 | By Shah Gilani

Bitcoin, the well-known and most widely “circulated” cryptocurrency, is grabbing a lot of attention lately.

Here’s the thing about Bitcoin: It’s not an investment. It’s merely a tradable thing, that’s all. The same goes for all the other wannabe legal tender cryptocurrencies.

The new attention is coming from the fact that they’ve all soared in price… Or value, or whatever they calculate their worth against.

Goldman Sachs Group, Inc. (NYSE:GS), arguably the most elite and most profitable trading shop, investment bank, and government puppet-master in Wall Street’s checkered history, is weighing setting up a trading operation and sales desk dedicated to bitcoin and other cryptocurrencies.

But that flies in the face of what other heavy-hitters are saying. Jamie Dimon, CEO of JPMorgan Chase & Co. (NYSE:JPM), the largest bank in the United States with its own formidable global trading operations, said only two weeks ago that Bitcoin was a “fraud” and he’d fire any employee who traded it for being “stupid.”

So, what gives?

It’s simple really. Bitcoin isn’t an investment-grade anything. It’s a tradable “instrument” like gold, or carbon credits, or tulips. The reality is that both Goldman and JPMorgan are correct, but only if you understand the nuance of this brand new situation.

The only way to trade cryptocurrency, if you must, is to follow these two rules…

My Favorite Reader Questions, Answered

0 | By Shah Gilani

September has been a busy month for us.

While the country slowly starts to recover from numerous natural disasters, there was no chance to catch our collective breath. There was a Federal Open Market Committee meeting. There are threats abroad. There have been plenty of promises coming from the Administration.

The month is coming to an end, but it doesn’t appear as though anything is slowing down. With that said, I figured now would be a good time to do another Q&A.

We really appreciate all of our readers and subscribers here at Money Map Press. We especially love hearing from you, so don’t be afraid to comment on any of the articles. And we especially love hearing if you find any success from acting on our expertise, so make sure to keep us in the loop. We want to hear it all.

I found some incredible questions in the comments section and in the emails my readers send, and some of them I needed to answer. From which financials to invest in, to where you should be placing your stops, to the market’s personality, there is a lot to touch on.

Let’s get started…

This Overlooked Number Could Determine Whether Any Market Correction Turns into a Crash

2 | By Shah Gilani

Of all the data in the just-issued Federal Reserve Statistical Release Z.1: Financial Accounts of the United States Q2 report, the fact that households and non-profits have 35.7% of their total financial assets in stocks was most surprising.

That’s the second highest percentage of stock holding for households on record, compared to the high of 42% in 2007, just before markets crashed.

Watching the percentage of households’ financial assets parked in stocks increase this late in “The Most Hated Bull Market in History” is important for two reasons.

It’s either telling us that the end is near, or that this time is different.

Here’s how you’ll know

Toys “R” Bust: How the Children’s Retailer Dug Its Own Grave

2 | By Shah Gilani

“I don’t want to grow up!” sang Toys “R” Us’ famous jingle from our TVs, year after year.

Unfortunately, that’s not how the world works, and neither kids nor retailers get to skip out on that reality.

Retailers don’t necessarily have to die, but plenty of them have been digging their own graves. The bankruptcy of Toys “R” Us wasn’t an accident or a surprise.

In a move one can justifiably call a suicide, the company choked itself to death with debt.

The demise of Toys “R” Us is a lesson for all retailers, and it’s a lesson for investors.

Here’s the truth about what pushed Toys “R” Us to the edge and how not growing up led to its bankruptcy

A Deeper Look into the Fed’s Balancing Act Reveals What They’ll Announce Today

3 | By Shah Gilani

Here we go again. Another Fed meeting, another round of handwringing over how markets will react.

It doesn’t have to be that way. While there are three possible market reactions to what I expect the Fed to say and do, there are only two probable outcomes for markets.

And in the end, they’re the same.

This time around, the Fed’s going to address the two big issues everyone’s questioning:

  1. When are they going to raise rates again?
  2. When are they going to start reducing their balance sheet holdings?

Here’s what the Fed’s likely to do, and how markets will react…

What Equifax Was Lobbying Congress for Before the Hack Will Sicken You

10 | By Shah Gilani

What we know about Equifax being hacked is frightening.

What the public doesn’t know, however, is far more frightening. Equifax had been trying to limit its own financial exposure and culpability in the event of a hack.

Besides spending millions of dollars on lobbying, Equifax’s PAC (political action committee) has been doling out money to legislators who, in turn, write bills to protect the company from consumers suing if their data is stolen and from regulators who could investigate and fine the company in response to negligence.

In fact, the day Equifax reported it had been hacked, a House Financial Services panel was discussing a bill being pushed by Equifax to limit credit reporting companies’ liability if hacked.

Here’s what Equifax wanted Congressional protection from and what you need to do to protect yourself after this breach…

The Smart Way to Be a Cautious Bull

3 | By Shah Gilani

As a long-term investor, I’m a raging bull. I expect the markets to double in the next five years.

However, as a trader, I’m cautious up here and I’m skeptical of the new record highs stocks just made.

There’s a dozen reasons that point to markets continuing to climb for several more years. But markets don’t go up in a straight line, though they can have long upswings lasting years.

We just made new all-time highs again in this post-Irma “relief rally”, so it’s the perfect time to check to see whether there are any serious impediments to going a lot higher in the short haul.

Here’s the base case for stocks doubling in the long-term, and how to survive the short-term pitfalls in front of us