Stocks are notching higher highs, but a lot of would-be investors are still on the sidelines.
Some have been scared of the market forever. Some have been scared since 2008. And some have been scared of getting back in since the election of Donald Trump.
Scared investors who avoid the markets during uncertain times think they’re making the smart play. But being scared doesn’t make you money, it costs you money. Over your lifetime, it will cost you a lot of money.
In a Washington Post interview earlier this month presidential candidate Donald Trump said “If the election is rigged, I would not be surprised, the voter ID situation has turned out to be a very unfair development. We may have people vote 10 times.”
Whether or not you like The Donald, as New Yorkers call him, you can’t fault him for saying the election could be rigged – because he’s right.
In fact, it’s even worse than he thinks.
But there’s a fix on the way – and it’s one of the hugely disruptive technologies we’ve been following over the last few months.
Here’s how easy it is to rig an election, how to fix voting to eliminate fraud, and how you can make money getting in on the fix…
On Making Money with Charles Payne, Shah addressed the question on everyone’s mind right now: will the Federal Reserve raise interest rates in September?
If so, what effect with that have on global markets?
It could have a huge impact on U.S. equities, the bond market, and even the presidential election.
That the markets are making new highs right now indicates that the Fed has the leeway to raise rates, but as Shah correctly points out, the central bank keeps moving the goalposts when it comes to rate increases.
If you have any intention of ever retiring, I’ve got some bad and good news for you.
The Federal Reserve’s zero interest rate policies were designed to benefit big banks with the hope that their flushed-up profits would trickle-down into the economy and spur growth. That hasn’t happened enough to benefit many Americans.
On Wednesday, I told you just how much money Americans have missed out on in the Fed’s near-zero interest rate environment – an astounding $470 billion between 2008 and 2013.
By the end of 2016, that number will balloon to $752 billion.
In a perfect world, the next president of the United States would win by a landslide if they announced they’d nominate Sheila Bair to head up the Federal Reserve and laid out her agenda.
Unfortunately – as we’ve been reminded countless times during this election year – ours is far from a perfect world
For this fantasy of mine to work, the next president would first have to reveal to the public what the Federal Reserve System really is, who really owns it, how it controls the government, how it has thoroughly screwed up the economy and destroyed free markets, and how it threatens our democracy.
Then, he or she would explain why Sheila Bair is the right person to head up the Fed and that her agenda would be to disarm it, dismantle it, and replace it with something altogether new.
Last week, I laid out Sheila Bair’s credentials and why she’s the right person for the job.
Today, I’ll tell you why unwinding and replacing the Fed would transform America – and how the next Federal Reserve chair can make it happen.
The interesting news coming out of Federal Reserve Chairwoman Janet Yellen’s Q&A yesterday was her response to a question about bad bank “culture.”
Apparently, it’s not the Fed’s concern.
Yellen said, “While changing the culture of organizations is not something that we can achieve through supervision, we will make sure that the banks that we supervise have appropriate compliance regimes in place.”
So far, the Fed’s “appropriate compliance regimes” let big banks get away with manipulating Libor, foreign exchange markets, metals markets and energy prices.
And that’s just a few of the big cheating regimes banks have lorded over.
The U.S. Securities and Exchange Commission, the undisputed top cop on the Street beat, has its work cut out for it. The enforcers at the SEC have to juggle what and whom they go after because, after all, they don’t have unlimited resources.
We all get that.
What I don’t get is why they drop the ball on some of the biggest schemes staring them right in the face.
Take “fair and orderly” markets for example.
They’re not always orderly, and the truth is they aren’t fair.
The folks at the SEC know this. So why have they taken so long to do so little about it?
Indeed, in yesterday’s Wall Street Journal, the lead article in the Global Finance portion of the “Money & Investing” section was “Watchdog Warns of Risk in Markets.”
Apparently the Office of Financial Research, the watchdog team created out of Dodd-Frank legislation under the “watchful” eye of the U.S. Treasury Department, observed the same move that I did – and found it just as rattling.
According to The Journal, the OFR warned that “the system is vulnerable to repeats of what occurred in October when tumult in the trading of U.S. Treasury securities spread broadly to futures, swaps and options markets.”
The watchdog group’s just-released third annual report soberly noted that “although the dislocation that peaked in mid-October was fleeting, we believe there is a risk of a repeat occurrence,” and further warned that resulting volatility “raises a host of financial stability questions.”