Articles About Trading & Investing

Make Money from the Federal Reserve’s Imbecility

0 | By Shah Gilani

It’s impossible to dig yourself out of a hole by digging the hole you’re in deeper, while you’re in it.

Tragically, that’s what the Federal Reserve System’s doing to our economic and capitalist future.

By manipulating interest rates so low for so long, and by extension forcing other central banks to cut interest rates increasingly into negative territory, the Fed’s perverted all monetary and fiscal realities.

The end, when it comes, and we’ll know it’s here when a president and party in power actively pursue Modern Monetary Theory (MMT), will be economic ruin and the final conversion of the most successful and powerful capitalist democracy the world’s ever seen, into a sycophantic socialist oligarchy.

Since the bell signaling the beginning of the end just sounded, here’s how to make money as the world implodes into the black hole dug for us by the Federal Reserve and central banks everywhere…

The Trading Strategy I Almost Never Tell My Readers to Use…

0 | By Shah Gilani

What a week last week was. And what a week we’re looking forward to.

If nothing else, last week’s rally was unexpected on the heels of the previous week’s nasty selloff – culminating in a more than 600 point drop two Fridays ago.

But futures last Monday reversed their pre-open tanking and led the way from the open through the week.

Trade talk, as mixed as it was, moved stocks higher last week.

What seemed unexpected about that is the fact that President Trump said the Chinese called and wanted to get back to the table. Too bad for the President the Chinese news agencies reported there was no call.

So, what happened that lifted stocks, and will it continue?

How a Manufactured or Virtual Recession Could Cause a Market Crash

0 | By Shah Gilani

Not everyone likes to hear good news about the economy.

Typically, political parties out of power want to see seated opponents get clobbered by economic failure.

In this age a real, or virtual recession, could be manufactured given today’s media reach and technological tools when leading to an election if even just in the minds of voters.

So, you need to ask yourself: Is a recession being manufactured right now? Who benefits from a failing economy or just pushing the recession narrative? Could a manufactured recession or incessant recession fearmongering crash the stock market? And, what would happen to you?

Since you just asked by reading those questions, I’m going to answer them for you.

Only, you’re not going to like what’s really happening and how bad it’s going to get.

But you are going to like knowing what you must do to make a ton of money off the very dirty game that’s going to go terribly wrong

Capital Wave Forecast: A Could Be Make or Break Week

0 | By Shah Gilani

This week could be a make or break week for the markets. It could also be a lot of nothing.

There’s a big difference.

A lot of nothing ultimately means very little net movement by the close this Friday from where we closed last Friday.

And less than noting means a flat week on noticeably diminished volume.

That’s a possibility because we’re coming to the end of summer, the end of traders and big decision-makers being on vacation. So, it wouldn’t be surprising to see a lot of nothing going on over the next two weeks leading up to Labor Day weekend.

On the other hand, there’s already been a lot of big-wig vacationers calling into their offices barking trading instruction to their minions from their Hamptons homes and the resorts of Southern Europe, on account of not being able to relax as news flow moves markets more than usual in the usually quiet half summer.

That news flow isn’t likely to diminish.At least, not just yet….

It’s Not the Economy, Stupid… It’s the Fed

0 | By Shah Gilani

Back in the 1992 presidential race, James Carville, Bill Clinton’s campaign strategist wanted his candidate to blame incumbent George H.W. Bush for the recession the country was facing and pressed the Clinton team into focusing on that key talking point by telling them, “It’s the economy, stupid.”

That phrase is still used today.

But it shouldn’t be when it comes to the stock market.

In fact, anyone who thinks the market’s wobbling because the economy is wobbling might be stupid.

The market is having an ugly bout of hiccups, not because there are any problems with the economy, it’s hiccupping because the Federal Reserve is stupid.

Here’s what the Fed’s doing that’s stupid, why we’re stupid to believe they’re not the problem, and how to fill in the hole they’ve dug for the country and the world

Capital Wave Forecast: Don’t Cry for the Stock Market, Just Yet

0 | By Shah Gilani

It looks like another manic Monday with futures indicating a down opening, maybe to the tune of a couple hundred Dow points.

But this Monday doesn’t have to be a replay of last Monday’s more than 700-point plunge, though it could be.

But I doubt it…

As volatile and ugly as last week was, especially Monday’s plunge on the heels of the previous week’s hard sell-down, the Dow ended last week down only 197 points.

The Dow’s only down 4% from its all-time high of 27,398 registered less than a month ago.

Year to date the Industrials are up a very handsome 12.69%.

And, though the Nasdaq Composite ended last Friday down the worst of major benchmarks, it was only off 44.93 points on the week.

The Nasdaq, only off 4.5% from its July all-time highs, is up a whopping 19.95% year to date.

That’s why I say, “Don’t Cry for the Stock Market.”

At least, not just yet….

The Unmitigated Mistake Central Banks Are Making (…and your Capital Wave Forecast)

0 | By Shah Gilani

President Trump just forced the Fed’s hand by calling out China as a currency manipulator.

What the President couldn’t do by publicly ripping the Fed via Tweets for raising rates and demanding to lower them, he accomplished by a more acceptable, and politically brilliant maneuver.

Calling out China for lowering the value of its currency to make its exports cheaper as it struggles with U.S. tariffs and slowing economic growth draws attention to how the value of the U.S. dollar rises against currencies that are manipulated lower, making U.S. exports more expensive, imports cheaper, inflation lower, and U.S. multinational companies’ overseas earnings weaker when they are translated back into more expensive dollars.

To offset a strengthening dollar and its negative implications the Fed can and will lower rates to at least match other central banks lowering their benchmark rates.

President Trump just guaranteed that, and at the same time gave the Fed cover to sell the public on it lowering rates again come September, on account of potentially negative economic implications stemming from the ongoing trade war with China.

They won’t say they’re lowering because the President forced their hand, or because they want to soften up the dollar. They’re too independent to admit they’ve been played.

But central banks are kowtowing to politicians, like never before, and it’s going to end badly.

Here’s why central bank independence is a joke, how politicians are forcing them to keep manipulating rates lower, and what it means for the future of markets…

How Europe’s Economic Problems Will Affect the U.S. Dollar

0 | By Wall Street Insights and Indictments Staff

On national television this morning, I shared what you already knew almost two weeks ago: The European economy is in big, and I mean real big, trouble. Over the past few weeks, I’ve laid out exactly how bad the economy in Europe is getting here, especially with how the European Central Bank is in dire circumstances dealing with the big scandals of Deutsche Bank, which you can read again here. Now see for yourself here how America will profit from Europe that made even Nigel Farage, the leader of the Brexit Party, chuckle… Click here to watch.

This Presidential Candidate’s Plan to Save the U.S. Economy is Scary

0 | By Shah Gilani

Not surprisingly, Elizabeth Warren, Democrat senator from Massachusetts and ranting politician with a knack for blowing smoke up everyone’s backsides, is promising she knows about “The Coming Economic Crash and How to Stop It.”

I’ve recently covered Warren’s actions on her antitrust attack on big tech. Read on here what I see this leadership will bring to investors, and it’s not good.

That’s because she predicted the last economic crash, she says. And, she sees into the future.

While her history of predictions is what it is – revisionist history – she only ever made general statements about the economy and housing as far back as 2003, 2004, and 2005, years before the real bubbles were inflating. Then she got on the bandwagon as the bubble became main street news, this time she’s sure another crash is coming.

Talk about fear mongering. Is that all she’s got to offer America?

No, that’s not all.

She’s also telling us how to stop the next crash.

Here’s what Senator Warren is warning about, how she’d prevent it, and why her cure is a million times worse than any economic illness that may temporarily give the economy hiccups

Capital Wave Forecast: Market Analysts Know the Price of Everything and the Value of Nothing

0 | By Shah Gilani

It’s more than likely going to be another week of sloppy trading.

Besides being an extension of last week when the Dow Jones Industrials rose gently on Monday, flat lined on Tuesday, dipped Wednesday, rallied Thursday, and ended Friday drooping into the close, there’s nothing monumental right in front of markets right now.

A rate cut at the end of the month is a foregone conclusion.

Thank you, Federal Reserve, for your cheerleading.

It’s going to be a quarter point, not a half point as some overzealous analysts were touting.

We know that fact of a rate cut percentage because the Fed sent up the smoke signals telling us that, just so no one got overzealous (you listening analysts?) and bid up stocks higher than the Fed expects them to be at this juncture