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Wall Street Scam Watch

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Wall Street Scam Watch

Protect your hard-earned money from Wall Street's antics. Get real-time tips and warnings delivered straight to your inbox.

Wall Street

Passive Investing's Dirty Little Secret: It's All Good, Until It Isn't

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The secret momentum driver elevating market indexes to all-time highs, again and again, is none-other than the "passive investing" trend. It's going on unbeknownst to even the drivers of this momentum bus.

Investors who don't understand how big an impact money flowing into index funds has had on the market's performance probably have no idea what could happen if the trend stalls, or worse, reverses.

Here are the pitfalls of passive investing and how bad the fallout could be if passive investors discover the trap they've entered, turn active, and sell.

Read more...

Wall Street

How to Avoid Wall Street's Latest Attack on Your Wallet

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On the surface, it seems great that Wall Street is finally paying real attention to average investors.

For years, it was a poorly kept secret that big firms, like Goldman Sachs Group (NYSE: GS), focused their efforts on catering to the rich.

After all, a commission or advisory fee on a $100,000 portfolio is peanuts compared to that of a $100 million portfolio.

But now, Wall Street is starting to like those peanuts.

Here’s why investors should be skeptical of Wall Street’s generosity…

Trading Strategies

How to Invest (and Trade) Through a Christmas "Crash"

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The S&P500 has tacked on a remarkable 25.16% so far this year, yet many investors are acting as if the "other" shoe is going to drop just like it did last year right around this time.

Honestly, that's a fair concern.

The markets have been a one-way train higher since January 2019. The S&P 500, for example, has put in over 15 new record highs over the past 12 months.

The known risks – political instability, Chinese trade, regulatory changes, signs of a global slowdown – are all well understood. It's the unknown that'll get you every time.

Wall Street would have you believe that the most effective way to hedge against unknown market risk is to diversify your portfolio.

The theory is pretty elegant – or at least it's supposed to be.

Spread your money around, it says, and, in doing so, you'll reduce your risk, because "everything can't possibly go down at once."

Problem is… that's a load of self-serving hooey.

Today's markets are more correlated than they've ever been, thanks to a witches' brew of computerized trading, exchange-traded funds – ETF's for short – and leverage.

You've got to do something different if you want to get ahead...

Options

Why Listening to the Bears This Holiday Season Could Cost You

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Some Wall Street analysts make a career out of being bearish.

These "Chicken Littles" of the investment world are always worried about something.

Politics, economics, China trade, an aging bull market, the weather – you name it, they always have something bad to say.

But we're entering December, what could be the most profitable month of the year.

And there are options trading strategies you can use to take advantage of that.

Read more...

Trading Strategies

You're Being Deceived, and I'm Fed Up with It

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Enough is enough.

I've reached my tipping point on the insanity that's going on in the media. And on Wall Street. And on Madison Avenue, for that matter.

Those three groups are dedicated to treating the rest of the world like mushrooms – keeping us in the dark and feeding us manure.

I want to do exactly the opposite.

I'm making it my mission to shine a bright light on the messages that are being sold to us. Messages meant to misdirect you and me. To mislead us. Or to cover up what's really going on.

Take Thursday morning for example, when a key bit of global economic data came out. Something that could make or break your investments for the rest of the year…

Germany is the largest economy in Europe, and the fourth-largest in the world. It's an industrial powerhouse that for decades has been driven by exports – sending cars, machinery, chemicals, and pharmaceuticals all across the globe.

The country's export focus makes Germany a key bellwether for how consumers across the world are doing. Strong consumer spending tends to mean high demand for imports, which bodes well for Germany.

So when Germany's manufacturing industry shrunk for three quarters running this year, it put traders on high alert.

Not that you saw much about this on the news, of course.

No, they had more "interesting and political" things to talk about. Like who said what about Ukraine, as if that was going to change something.

It's just not.

But the fourth-largest economy in the world shedding factory jobs at the fastest rate in almost ten years — that can change everything. It's a key sign that the global economy might not be doing so well.

Yet both on TV and online, all you heard about was "impeachment" this and "Ukraine phone call" that.

Meanwhile, here's the news that really matters, and how you can profit from it…

Meanwhile, here's the news that really matters, and how you can profit from it...

Wall Street

How a Secret Group of Traders Are Getting Rich off Trump's Tweets

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Wall Street insiders, by the looks of things, have made a killing from Trump's tweets.

And that's unfortunately something the average investor can't do.

But we found a way to get even...

Wall Street

The One Mistake Every Investor Is Making According to Michael Burry

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It looks like life may be about to imitate art. Michael Burry, the investor who shorted mortgage securities ahead of the 2008 housing meltdown and was chronicled in the movie, "The Big Short," sees another gigantic problem ahead. In fact, he thinks it could cost investors a bundle if they're not careful. You see, Burry […]

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Washington

How a Manufactured or Virtual Recession Could Cause a Market Crash

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Not everyone likes to hear good news about the economy.

Typically, political parties out of power want to see seated opponents get clobbered by economic failure.

In this age, a real or virtual recession could be manufactured given today's media reach and technological tools when leading to an election – if even just in the minds of voters.

So, you need to ask yourself: Is a recession being manufactured right now? Who benefits from a failing economy or just pushing the recession narrative? Could a manufactured recession or incessant recession fearmongering crash the stock market? And, what would happen to you?

Well, I'm going to answer those questions for you.

Only, you're not going to like what's really happening and how bad it's going to get.

But you are going to like knowing what you must do to make a ton of money off the very dirty game that's going to go terribly wrong...

Trading Strategies

How Corporate America Cheats Investors Every Day

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An underwhelming earnings season is winding down while stocks struggle. The sell-siders are, bluntly, panicking.

I wouldn't be surprised in the least to find many of you have heard from your advisors over the past few days – advisors with a vested interest in keeping you long the markets (and ensnared in their asset-based fee models).

I'd also bet you're being told "not to worry." I bet you're hearing a lot about companies "flush with cash" and "beating their earnings expectations."

I bet you're being told, despite the obvious signs all around us, that this market is "uniquely solid" and that "the numbers confirm it."

Have I pretty much nailed it word for word?

That's because I'm a hedge fund guy. I know the legal tricks and accounting stunts that keep CEOs and, well, hedge fund guys "well-remunerated."

I'll let you in on another secret: They're lying to you. The market is lying to you, and it's costing you plenty...

Stocks

70% of Stocks Are Busts – Here’s the Secret to Finding the Best Stocks to Buy Now

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It’s a sad truth, but market-beating stocks are a small minority.

And that’s why many investors are up day and night trying to discover the next winner.

We know at least one of the best stocks to buy now is going to finish 2019 with 96% growth.

Admittedly, we didn’t lose sleep finding it. It was easy.

In fact, using this method, we didn’t even have to think about it.

With 713.60% surprise earnings this quarter, this has been one of the best stocks to buy for almost a year now.

And it’s still growing.

Here’s how we know…

Today's Markets
DJIA 50.45 (0.17%) 29,348.10
NASDAQ 31.81 (0.34%) 9,388.94
S&P 12.81 (0.39%) 3,329.62