Hedge fund filings for the second quarter show a spike in defensive positions, which many have interpreted as a sign that professional investors like George Soros are preparing for a stock market crash.
And yet these hedge fund managers don't seem to be bailing on stocks altogether. Some even increased their long positions.
But if you dig a little deeper it becomes clear exactly what Soros and his fellow hedge fund managers are up to - and it makes perfect sense.
Here's why you should follow their lead on this...
stock market crash
Is a Stock Market Correction Coming?
More than three years have passed without a stock market correction, and this has investors, traders, analysts, and economists wondering when one will occur.
Even with interest rates sitting at rock-bottom levels and earning next to nothing for savers, right now, sitting on cash isn't a terrible thing.Here’s why so many big-name investors have kept cash hordes growing instead of invested – this will have a major impact on your money…
You Can Make Money in Stocks (Especially These Three) No Matter What Rates Do
It's commonly held wisdom that stock markets go to heck in a hand basket when interest rates rise. So, the thinking goes, you'd be better off selling ahead of time before that happens.
No doubt it's tempting to head for the hills with rates at historical lows, but it pays to do your research before you hit the "sell" button.
The three companies I'm going to show you today, for example, can actually benefit from rising rates.
First, let's take an "Econ 101" look at the impact interest rates can have on stocks, especially when rates start rising...Full Story
Short Selling Unpopular GameStop Stock (NYSE: GME) Hasn't Paid Off – Yet
GameStop stock (NYSE: GME) is a short selling favorite, and for good reason.
It's trying to navigate an online-centric marketplace as a physical retailer, and the short bets are playing off this knowledge to mount a strong position against the company.But trying to profit off GME's downfall has proven harder than anticipated. Here's why...
Stock Market Crash 2014: How a Correction Could Turn Into a Meltdown
Instead of getting the healthy correction that many market watchers have been expecting for months, several hard-to-see cracks in the market infrastructure could instead give us a full-blown stock market crash.
Money Morning Capital Wave Strategist Shah Gilani is not surprised, as he has been predicting a 20% stock market correction for weeks. The reason, he said, is that the stocks have raced too far ahead of the economy.
But Gilani, a former hedge fund manager, sees several major problems with the mechanics of the markets themselves.Any one of these could turn a correction into a painful stock market crash...
Today's Stock Market Crashers Include WAG, TWX, GRPN
Six downtrodden stocks made our "stock market crasher" list today (Wednesday).
They are Walgreen (NYSE: WAG), Time Warner (NYSE: TWX), T-Mobile (NYSE: TMUS), Groupon (Nasdaq: GRPN), Rocket Fuel (Nasdaq: FUEL), and Cognizant Technology Solutions (Nasdaq: CTSH).
And what's behind their respective sell-offs can be divided into just two groups:Deals gone sour and earnings gone wrong...
These Signs of Market Trouble Are Looming
Editor's Note: By now you're familiar with Michael E. Lewitt of The Credit Strategist. We love his work. Today, he has a special report on current, troubling conditions at this late stage - and a dire warning for investors who may be unprepared. Here's Michael...
"Markets are priced to perfection...
Signs of late cycle behavior and thinking are abundant...
The latest example came from BMO's strategist Brian Belski, who published a report arguing that the bull market in stocks will continue for another ten years with annual gains of 10.5%.
This is the type of report that appears at market peaks. Despite the fact that it was dressed up in statistics and produced by a respectable brokerage house, this isn't a serious piece of research; it is nonsense and anyone who takes it seriously and invests based on its conclusions deserves the losses that will follow."
The above is excerpted from a recent report I produced for my Credit Strategist readers. I wanted to share with you some of my thinking on rapidly coalescing signs that point to growing cracks in the façade of a healthy market... Full StoryRead More...
Today's Stock Market Crashers: Why GIMO and TCS Took a Dive
Gigamon stock (NYSE: GIMO) and Container Store stock (NYSE: TCS) both tumbled today (Wednesday) to earn "stock market crasher" status.Here’s what’s behind their respective drops…
These Lies Could Trigger Another Market Collapse
The public has been brainwashed about deflation.
We've been hoodwinked by central banks, governments, and the manipulators who pull the reins of those Trojan horses into believing that deflation is a deadly disease. It's not.
So, why are we browbeaten into believing that deflation is so bad?Here's the truth about deflation and how its fearmongers are really screwing us over...
Argentina Stock Market Crash Reverses After Today's Deal – for Now
Monday, a stock market crash to the tune of a 12.22% drop hit the Merval Argentina (BCBA: IAR), the most important index of the Buenos Aires Stock Exchange. The index fell to 5,847.78 by market close on Monday – 15% from its all-time high hit just six days prior.
But today, Argentina’s stock market got relief. Stocks are up 1.14% after the country’s lawyer said it will negotiate with a group of hedge funds that are suing over $1.33 billion in bonds.The move is historic since Argentina had said it would never negotiate with the group – but, after what happened this week, they had little choice...
Stock Market Crashers: What's Behind Lifelock Inc.'s (NYSE: LOCK) Double-Digit Drop Today
Consumer security company Lifelock Inc. (NYSE: LOCK) earned "stock market crasher" status on Monday when it dropped 17.57% to $10.70 per share by close.Here’s what’s behind LOCK’s stock market crash today…
Lifelock, heavily advertised on "The Rush Limbaugh Show," provides identity theft protection services for consumers and identity risk assessment and fraud protection services for businesses. The company went public on Oct. 12, 2012, and investors had locked in gains of more than 200% through the beginning of February. Shares are still 46.17% above initial offering price, but LOCK stock is down 34.08% year to date and 51.3% since mid-February.
Stocks to Buy: Get the "Google of Russia" for a Bargain
When looking for the best stocks to buy, many investors avoid companies and markets that are tangled in bad news.
For many, it seems like common sense to avoid areas that keep generating negative headlines. But for shrewd investors, "bad news" can frequently generate very profitable stocks.And right now, Russian tech stocks are providing investors with discounted buy-in opportunities. This tech stock in particular has huge potential…
Stock Market Today: Wal-Mart Misses Earnings, Other Top Stories
Stock market today, May 15, 2014 The Dow Jones Industrial Average slumped from record highs yesterday on concerns of rising inflation. Producer prices increased 0.6% in April, the largest increase since September 2012. Economists had predicted a rise of just 0.2%.Here’s what you need to know to make your Thursday profitable:
Dow Jones Today Dips on Inflation Fears, Plus 9 Other Top Stories
The Dow Jones today fell more than 100 points, and the S&P 500 and Nasdaq fell as well.Here's what moved the Dow lower.
How to Profit from Market Volatility
During my 30 years as an investor, I've developed five tools that demonstrate how to profit from market volatility. And today I want to share them with you.
With the Nasdaq Composite Index - and tech stocks in general - going through a turbulent stretch of their own, these five rules will help keep you from making mistakes.You literally can't afford not to read this...
Stocks to Buy: Why This Biopharma Company Is a “Long-Term Profit Machine”
One strategy experts use when looking for the best biotech stocks to buy is finding companies with promising drug candidates that are close to receiving regulatory approval. When these drugs hit the market, they can bring in billions in revenue.
When companies have multiple promising drugs in their product pipeline, they become even more attractive because they have more than one shot at finding a revenue blockbuster.That’s why Money Morning’s Defense & Tech Specialist Michael A. Robinson likes this biotech stock to buy now…