Category

Financial Crisis Investing

Stocks

Five “Zombie” Companies to Play for Big Profit Potential

They stagger aimlessly along, overwhelming portfolios, dragging down defenseless stock indexes, and devouring hard-won profits.I’m talking about “zombie” companies, and, unlike movie monsters, they’re a very real threat.

Read more...

Market Crash

Do This Before the $170 Trillion Global Debt Trap Sinks the Markets

A worsening global debt trap will make it much harder, if not impossible, for the world's central banks to respond to the next major financial crisis.

Ten years of low interest rates and money-pumping policies of central banks were intended to lift us out of the last financial crisis. But those policies also encouraged businesses and individuals to acquire mountains of debt. Now the central banks are stuck with no ammunition to fight the next crisis. But investors can take steps to protect their money.

Here's what you need to do...

Stocks

Congress Just Set the Stage for the Next Financial Crisis

Last month, Congress agreed to free thousands of banks from tight restrictions put in place by the 2010 Dodd-Frank law – legislation put in place to prevent a new financial crisis.

According to Money Morning Capital Wave Strategist Shah Gilani, we shouldn't be surprised.

"It's no surprise that Congress is pushing bank deregulation," Gilani said. "After all, it's a midterm election year, and both parties want bank and financial services money directed their way."

However, Shah thinks Washington is missing the bigger picture. In fact, it's likely that they've set the stage for the next financial crisis.

Stocks

Congress Is Paving the Way for the Next Financial Crisis

Ever since the Republican Party assumed control of Congress in 2012, conservative leaders have pushed to roll back banking regulations in an effort to turbocharge financial growth.

As Money Morning Capital Wave Strategist Shah Gilani points out, this isn't new. "It's no surprise that Congress is pushing bank deregulation.

After All, it's a midterm election year, and both parties want bank and financial services money directed their way," he says...

Market Crash

The February Correction Was a Mere Prelude to This Looming Crisis

The stock market correction that kicked off February served as a wakeup call for investors.

Some investors have even gotten complacent after nine years of a bull market run.

But we all know bull markets end. And what could come next is much more dire than a market correction, or even a crash...

Washington

Why Donald Trump Should Dismantle Dodd-Frank - and How He Can Do It

Donald Trump campaigned on his ambitious agenda to overhaul the many federal regulations currently in place.

He wants to stimulate economic growth by dismantling parts or even all of the Dodd-Frank Act.

Here are three ways he can attack this Wall Street-friendly law...

Global Markets

Time for More Double-Digit Gains from "the Country of the Future"

"Boom and Bust" Brazil's long political drama is reaching a fever pitch. Yesterday morning, the Brazilian Federal Senate voted to impeach President Dilma Rousseff. While the Senate still has to convict her, she'll be suspended from office until her trial ends.

Rousseff stands accused of being at the very heart of a vast web of corruption that's brought South America's biggest, most diverse economy into a biting recession.

Rousseff and her many supporters call the impeachment proceedings "a coup," while her opponents call it "justice." Brazil's divided society has taken to the streets with near-daily demonstrations and violence between the two sides.

What's more, all of this is taking place against a backdrop of plunging commodities, double-digit inflation and interest rates, a collapsing real, and, yes, even the dreaded Zika virus.

In other words, conditions are perfect for what could be the contrarian play of the year.

Remember, the United States has seen low growth, political gridlock, and social upheaval, all while its stock market went stratospheric. The effect in Brazil is likely to be stronger and more lucrative; GDP shrank 3.95% last year, but Brazilian stocks have surged 35% in the past three months alone, and they've historically shot up by more than 1,000% at times like these.

There's always opportunity in chaos, if you go where the growth is. And we're going to get huge exposure to that growth, with almost none of the downside, on this play...

Market Crash

George Soros: We Are Repeating 2008

George Soros offered a grim prediction for the markets yesterday, likening this environment to 2008.

This time, however, he blames China's over-indebtedness as the primary factor responsible for global market woes.

Here's the Hungarian-born hedge fund manager's full warning...