Articles About Trading & Investing

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

What to Do Ahead of One of the Most Powerful Atlantic Hurricanes on Record

3 | By Shah Gilani

Right now, Hurricane Irma, after devastating large and small islands up and down the Caribbean, and taking lives, is preparing to hit Florida in a matter of hours.

Hopefully, if you or your loved ones live in the path of the storm, you’ve hightailed it out of the storm’s path and are someplace dry and safe.

If you’re hunkered down or way out of the way on the other side of the country, now is a good time to consider the impact of this massive storm on your investments.

I’m not just talking about a home or vacation house that might be in harm’s way – but all of your investments.

No matter where you live, and no matter the size of your portfolio, Irma is about to have an outsized impact on your bottom line.

Let me show you what I mean

Uber Wrecked Their IPO Three Years Ago

2 | By Shah Gilani

Uber Technologies Inc., the smartphone-based cab hailing company that operates in 633 cities worldwide, announced this week it might be going public as early as 2019.

That gives the beleaguered private company, which has a reported $50 billion valuation, about a year and a half to get its house in order… And to hopefully sell shares to the public at a significantly higher valuation.

Good luck with that.

The once high-flying unicorn has made an ass out of itself and lost $3 billion last year. This company has probably blown its chances of selling itself to the public for a crazy valuation that it could have commanded years ago.

Here’s how Uber blew it, what they should have done instead, and what you should do when the company finally does offer itself to the public…

These Are the Triggers That Could Bring the Markets to Their Knees

2 | By Shah Gilani

There’s a real, clear and present danger with more than $3.3 trillion parked in passive investing indexed mutual fund and ETF vehicles.

If something triggers so-called passive investors into actively dumping index funds they’re loaded to the teeth with, a black swan-like negative feedback loop could send stocks lower and lower and lower.

Here’s how dangerous things are, what could trigger initial selling, what a negative feedback loop would look like, what you need to watch out for, and how to prepare for what could turn into a market crash.

Let’s get to it

The Market’s Favorite Investing Trend Could Be It’s Next “Black Swan”

3 | By Shah Gilani

If you think the migration of trillions of dollars into passive investing strategies has put volatility to sleep, you’re absolutely right, for the most part it has.

But what if blanket indexing isn’t the dream investment it’s cracked up to be?

What if the mad rush into passive investing vehicles merely casts a shadow over volatility?

What if passive investing is a black swan and it unleashes the volatility that crashes markets?

We’re going to find out – maybe sooner than later.

Here’s how passive investing masks real volatility and what to do to protect your investments from the inevitable return of volatility with a vengeance.

SHLD and KSS Are a Perfect Example of This Rally’s Effect

4 | By Shah Gilani

On Wednesday, I covered what makes these markets look safer than they really are.

They’re being lead ever-higher by behemoth leadership stocks while the VIX plumbs ever-lower lows. Investors are doing very little hedging. Some of the bricks-and-mortar retail companies we’ve targeted are getting an extension put on their death sentence as they’re being lifted with the rising tide.

But that doesn’t mean that these companies are suddenly better. And it doesn’t mean that the positions you are already in that are preparing for their demise are now worthless.

Far from it.

Here’s what the VIX is missing, and how our positions in SHLD and KSS have been affected

The Major Side-Effect of This Rally to Watch Out For

1 | By Shah Gilani

For months, I’ve been telling you that the markets are headed higher.

A side effect is that they would likely take some of our targeted bricks-and-mortar retail losers higher as well, making those crappy stocks appear ripe for a real turnaround.

That’s exactly what we’ve seen – an across-the-board rally that’s inflating the stocks we know are headed south.

Today, I want to take a deep dive into the market rally, tell you why some crappy retail stocks are going along for the ride, and show you why they will not continue to rise with the rest of the markets.

Let’s get started…

Believe It or Not: There’s a Simple Fix to the Student Loan Crisis

23 | By Shah Gilani

Student loan debt is a monster problem.

But it doesn’t have to be, and it shouldn’t be.

There are a host of reasons that have contributed to the current crisis, but here are the main issues:

  • Higher education is too expensive.
  • The government shouldn’t be financing or guaranteeing student loan debt.
  • The ability to pay back loans isn’t 100% income-based.

This may seem like an insurmountable task that we couldn’t possibly see resolved in our lifetimes, but that simply isn’t true.

Here’s the simple solution that fixes the systemic issues in higher education financing…

How Loans Turned American Students Into Indentured Servants

3 | By Shah Gilani

It doesn’t matter if you’re liberal, conservative or libertarian. We all know that the student loan crisis forcing Americans into indentured servitude is wrong.

Student loan debt in the U.S. is at more than $1.4 trillion and counting. That debt…

  • Can’t be paid off without tens of millions of better-paying jobs.
  • Can’t be discharged in bankruptcy.
  • Can’t be stopped from growing because it serves the for-profit universities and the so-called non-profit universities’ egregious profitability.

President Obama addressed America’s massive student loan problem with legislation and an executive order, but nothing really changed.

President Trump is proposing changes to income contingency repayment plans and forgiveness programs in his 2018 budget.

Those proposals would be a help, but they won’t stop students of all ages from remaining or becoming indentured servants to the false hopes and profiteering schemes of greedy universities.

Here’s how it got this bad, and why these fixes are only Band-Aids on a plague…

One More Terrible Company to Keep Far Away From Your Money

3 | By Shah Gilani

On Wednesday, I let you know why your dream-catching portfolio that you’re building should never have APRN in it.

Today, I’m warning about another recently launched wannabe highflier IPO that crashed. Though it may look like a bargain now, it’s just another gambler’s stock and not a portfolio candidate.

I’m talking about Snap Inc. (NYSE:SNAP), parent company of the app Snapchat.

Their earnings report will be released soon, and there’s a chance the stock could see a pop. But if you’re smart, and I know my readers are, you’ll think twice before buying into this fad.

Here’s why SNAP will never be worth a gamble…