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Wall Street

Wall Street

How to Prepare for "The Mother of All Bubbles"

From the Editor: No fewer than 165 stocks on the major exchanges hit new 52-week highs yesterday, which is all the more reason to take notes today… Shah's been identifying bubbles for decades, ever since his hedge fund days. And now that he uncovers them for individual investors, his readers know firsthand that "bubble watching" is more than a wealth protection strategy.

They made 218% the last time Shah prepared them. And they made 371% and 455% the time before that. Those bubbles were little, too, compared to this one…

There are lots of reasons to be fully invested in the stock market. And that's why it's so important right now to keep an eye on all the bubbles.

They're everywhere. And we have plenty of reasons to fear any number of them bursting.

Hot Stocks

Best Stocks to Buy Now: A Money Morning Weekly Roundup

Optimism returned to Wall Street last week, as Syria attack talk subsided and the yield on the benchmark 10-year Treasury note slipped.

Triple-digit gains Monday through Wednesday last week added 401.10 to the Dow. Stocks closed with modest losses Thursday, with the S&P 500 Index snapping a seven-day winning streak. But the bulls were back in force Friday, helping the Dow log its best week in nine months.

Yet, the market pendulum continues to swing between risk-off and risk-on trading, leaving investors cautious.

Money Morning's updated list of the best stocks to buy – and some to avoid – address today's biggest market concerns and find the smartest opportunities for your money now.

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Top News

Ten Numbers Shaking the World Right Now

Here are this week's need-to-know facts about the stock market, economy, Wall Street, and life-changing global events…

It's the numbers that count in this crazy world. They can tell stories that words sometimes can't.

Here's a look at some of the fascinating, infuriating, amusing, depressing, and altogether important numbers that the world has put up on the board recently – and why you need to know them.

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Wall Street

The "Halting" Truth of a Frozen Nasdaq

If Goldman Sachs can lose $100 million in a matter of minutes on account of its computers misfiring, is that a sign of things to come? Or is it proof we're already there?

You heard about last week's shutdown, but do you know what it means?

On Tuesday morning, Goldman Sachs let its computers run; too bad for Goldman they got out of the corral and ran wild.

Wall Street

The Icahn Lift: Let Carl Icahn Give You Double-Digit Gains

If you owned Apple Inc. (NYSE: AAPL) stock , you saw a 5% jump in shares on August 13, when Carl Icahn tweeted that he held "a large" position in Apple.

Same with Netflix Inc. (Nasdaq: NFLX), when shares spiked as much as 14%, back on October 31, 2012, when Icahn's regulatory findings revealed he held a tidy 10% stake in the company.


The Most Hated Man on Wall Street – And Why You Should Back Him

Interview with Senator Angus King, Co-author of 21st century Glass-Steagall

A little more than two weeks ago a "little" story hit the news. And by little, I mean perhaps the biggest money story that you and I will likely see in our lifetimes.

That's because, for the first time in decades, it sets up two opponents, Wall Street and Washington, on opposite sides of the ring.

So who is "the most hated man on Wall Street" right now. That would be Senator Angus King, along with his cohorts Senators Elizabeth Warren and John McCain.

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stock market news today

Stock Market News Today: What and Who to Watch

After last week's onslaught of economic indicators and earnings reports, the stock market today is down in morning trade.

As earnings season winds down, this week has fewer economic reports in the pipeline and the stock market today is slightly weighed.

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Wall Street

Goldman Sachs, the Judas Penguin, and the Tip of the Iceberg

News from Wall Street this week reminded me of the penguins that inhabit the icy, turbulent waters of the Southern Ocean.

These penguins are preyed upon mercilessly by tremendous, ravenous orcas – a terrible beast to feel gnawing on your leg if you derive your daily bread from the frozen, watery wastes.

But the penguins have devised a clever, if brutal, warning system.

A flock of penguins will gather apprehensively at waters' edge… and one luckless penguin will be pushed into the sea. If the penguin is ripped to shreds by killer whales, the rest will hang back a while.

Otherwise, the rest of the flock piles into the briny deep.

Goldman Sachs Group (NYSE: GS) bond trader Fabrice Tourre is one of those luckless, doomed penguins.

The predator in this case is unlikely: a normally toothless flounder otherwise known as the Securities & Exchange Commission.

Fabrice Tourre, a bond trader of the middling ranks, was earlier this week found liable for six of seven fraud charges relating to Goldman Sachs' trading of toxic mortgage assets.

The civil trial – a rare prosecution – provided a rare victory to the SEC, who, after a loss and a draw, are desperate for a win. At issue was whether or not a full $1 billion worth of collateralized debt obligations (CDOs) were fraudulently marketed.

They were.

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Wall Street

Goldman Sachs' "Warehouse Shuffle" Just Cost You $5 Billion

It's just another game for Goldman Sachs Group (NYSE: GS) – a "warehouse shuffle" that moves aluminum around while the big bank collects rent on the metal.

Although the rent on the stored aluminum – Goldman isn't allowed to actually own the commodity – is just pennies a day, the vast amount of the metal it has stored in its 27 Detroit warehouses and the "warehouse shuffle" strategy that enables it to extend the rental period for months on end adds up.

Through the Metro International Trade Services subsidiary it bought in 2010, Goldman has accumulated 1.4 million tons of aluminum, which it stores at about 48 cents per ton per day. That's about $672,000 per day of revenue – nearly half a billion a year.

Experts say the warehouse shuffle game ultimately raises the price of aluminum to manufacturers – everything from beer and soda companies to automakers. That extra cost, about $5 billion over the past three years, is passed on to consumers – you and me.

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Glass-Steagall Act 2013: When Financial Regulation is the Best Thing Ever

Unlikely political bedfellows Senators Elizabeth Warren (D-MA) and John McCain (R-AZ) have put their voices together to call for a 21st century version of the Glass-Steagall Act, also known as the Banking Act of 1933.

This proposed regulation will rebuild the "wall" between investment banking and commercial banking, and prohibit large banks from taking speculative steps – bets, really – with depositors' assets.

There will still be a place for the big bad boys of banking to bet, to make the moves that make big money, but it will not be your money – or mortgage, or 401(k), or IRA – that they will play with.

According to Senator Warren, until Glass-Steagall was passed in 1933, American banks reeled drunkenly through cycles of rapid expansion and collapse about every 15 years since the late 18th century.

Glass-Steagall, though, threw up a brick wall around investment banking and commercial banking. Among other things, it prevented banks from making big bets with customer deposits.

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