The whole idea of passive investing – investors tracking the market by owning index funds – has been turned on its head by exchange-traded funds (ETFs).
Most ETFs are index funds, but the investors in them have become anything but passive. Active ETF trading has become the new passive investing, which makes ETFs potential financial weapons of mass destruction.
I’ve been warning my readers about the dangers of ETFs for years. ETFs can lead to a crash when so-called passive investors turn active, as they have been doing lately.
Barron’s front-page story on Monday morning about John C. Bogle, the father of passive investing through mutual funds, got me riled up. It’s a good summation of some of the problems with index ETFs, as Bogle sees it, but it doesn’t go into the weeds at all.
The dirt at Wells Fargo & Co. (NYSE:WFC) knows no depths. This week, yet another example of systemic fraud was unearthed.
From 2017 through early 2018, employees at the Systemically Important Financial Institution (SIFI) fraudulently altered social security numbers, addresses, and dates of birth on thousands of corporate customer documents.
The 10-Year Treasury yield stepped into dangerous territory this week when it toed the line of 3%, finally settling to 3.07% this morning. It’s a sure sign of inflation, and it’s certainly a big loss in the bond world, but Shah Gilani isn’t worried…
On this week’s installment of Varney & Co., Shah and host Stuart Varney discuss what’s going on with Macy’s Inc. (NYSE:M)’s stock and why Shah won’t touch it. Later, Amazon.com Inc. (NasdaqGS:AMZN) has extended their empire further by offering Prime members an extra discount at Whole Foods – and Shah talks about what that means for Amazon’s slowly withering competitors. Click here to watch…
For the past few weeks, Shah Gilani has been back and forth to Money Map Press’s Baltimore headquarters, frantically preparing for the biggest reveal of 2018.
It’s something that you’ll have to see to believe, which is why we’ve pulled our resources and will show you this exclusive video of Shah from last week.
Originally published on Money Morning’s website, this appearance was one that shook readers to the core: Shah Gilani reveals one of the most profitable secrets to date. You can view the original article here.
This secret is like Lloyd Blankfein handing you the keys to Goldman Sachs Group Inc. (NYSE:GS)’s proprietary trading room, or like Warren Buffett pulling out the chair for you in Berkshire Hathaway Inc. (NYSE:BRK.A)’s boardroom…
For the past decade, Shah Gilani has worked with a genius mind to develop the kind of proprietary mathematical system that has made big banks like Goldman Sachs billions upon billions of dollars year in and year out.
Last week could have been a back-breaker for stocks, but it wasn’t.
Instead, what turned the tide was bad news taking the markets to a very good place.
Rather than testing support-level lows, the markets went up across the major indices. The Dow increased 2.3%, the S&P 500 increased 2.4%, and the Nasdaq Composite increased 2.7%.
What could have made last week a bad week was if stocks plumbing near their lows had broken down and traded through critical support levels. The S&P 500 had touched – make that tested – its lows three times since the February selloff, and so had the Dow.
Not only that, if the market had seen that kind of selling, the S&P 500 could have experienced a “death cross.”
There’s no CEO on the planet more exciting and futuristic than Elon Musk – the founder, principal owner, chairman, and Chief Executive Officer of Tesla Inc. (NasdaqGS:TSLA).
While he is undoubtedly all of those things, some detractors say he’s also a sham salesman, selling snake oil to the masses and greedy investors who want to believe his cars, solar homes, space adventures, and tunnels are our future.
As for me, I think he’s a genius. However, I’m not convinced his endeavors are going to work out for investors.
Lots of problems are brewing for Tesla and Mr. Musk’s related companies, and it’s all about to come to a boil – and likely sooner than we think. Investing in the stock is not an option right now, but I have a sneaky play that could have you rolling in the dough while the company scrambles.
LendingClub Corp. (NYSE:LC), the first peer-to-peer lending site to go public, looked like a serious financial sector disruptor in December 2014 after its stock shot up 56% with its initial public offering (IPO).
Not only has LC’s stock collapsed, but the company’s also reeling from regulatory hits, it just announced a lawsuit with the Federal Trade Commission, and it’s facing a class-action lawsuit over lack of material disclosures that should have warned shareholders the stock was vulnerable to investigations.
Watch out, Match Group Inc. (NasdaqGS:MTCH) – Facebook Inc.(NasdaqGS:FB) is next up to dive into the online dating business. Following their security scandal, this may be just the thing that will shift investors’ focuses from Facebook’s shame to their march forward.
On this week’s episode of Varney & Co., Shah Gilani and host Stuart Varney discuss what Apple Inc.(NasdaqGS:AAPL)‘s next milestone will be – Shah even predicts exactly when he foresees the company reaching the exceptional title of Trillion-Dollar Company. Then, Stuart and Shah go over if Tesla Inc.(NasdaqGS:TSLA)‘s $301 stock is worth purchasing now, if Amazon.com Inc.(NasdaqGS:AMZN)‘s Prime price hike is a wise move, and which one of the most popular social media apps may be in danger. Click here to watch…