By Shah Gilani, Chief Investment Strategist, Money Morning • @ShahGilani_TW - • Print | Email
Thousands of American companies – many of them publicly traded – are sliding towards bankruptcy.
The U.S. Federal Reserve is buying the bonds of some failing companies in an effort to keep them alive, but this is one strategy that's not going to work.
The coming tidal wave of bankruptcies will overwhelm the Fed's rescue efforts and could sink the stock market.
By Shah Gilani, Chief Investment Strategist, Money Morning • @ShahGilani_TW - • Print | Email
The Federal Reserve's promised to be the support pillar that holds up America's capital markets.
And they've promised to hold up the economy no matter how bad things get.
Too bad the price America's paying – our way of life – is too high.
Here's the short story of how the Fed hijacked free markets and ushered in socialism – and how to win our freedom back… Full Story
By Shah Gilani, Chief Investment Strategist, Money Morning • @ShahGilani_TW - • Print | Email
If our plans to “reopen America” trigger another spike in coronavirus cases and hospitalizations… and the 14.7% unemployment rate that represents 23.1 million Americans out of work… there’s a looming implosion that everyone’s been ignoring. We’re talking about Mortgage Massacre 2.0. And it’s right around the corner. U.S. households are creaking under the weight of the debt they’re carrying. And most frighteningly, mortgage debt at $10 trillion is up $150 billion in a year, climbing a whopping $29 billion in the first quarter of 2020. As job losses increase and furloughs turn into permanent layoffs, households are going to have a much harder time paying their bills, especially their biggest monthly bill, their mortgage or rent. Or, maybe they won’t have to pay it. Here’s our Shah Gilani with the details…
Or, maybe they won't have to pay it...
By Shah Gilani, Chief Investment Strategist, Money Morning • @ShahGilani_TW - • Print | Email
According to the Investment Company institute (ICI), year to date, investors have taken some $291 billion out of mutual funds and exchange-traded funds.
But that's not the whole story. The ICI's numbers represent net flows, meaning there were inflows, but they were dwarfed by outflows.
The real story isn't about net outflows – it's about where the $108 billion that flowed into the market went, and how you can profit from that movement.
ETFs are much better investment vehicles than mutual funds.
They're tradable all day (which means they're infinitely more "liquid" than mutual funds), they're cheaper than mutual funds, and there are thousands of specialty ETFs that mutual funds can't touch.
And today, our Shah Gilani is going to show you where the money went and how to follow it...
By Shah Gilani, Chief Investment Strategist, Money Morning • @ShahGilani_TW - • Print | Email
The novel coronavirus isn't "novel" anymore.
It's everywhere.
And it's disrupting how we live, how we work, and how we invest.
Huge paradigm shifts are already underway.
Here's how life as we know it is changing…
The Reaction to COVID-19's Origin and Spread
The origin of the novel coronavirus is unknown – at least officially. But that hasn't stopped speculation about whether the virus manifested itself naturally – perhaps originating in bats, got passed to an intermediate animal host, and morphed or became zoonotic, and able to infect humans – or whether it is a manmade virus.
If it is zoonotic in origin, the world will still want to know where and how it happened – and how to prevent naturally occurring future virus mutations.
If its origin is manmade – whether it was being engineered as a SARS vaccine, or as an HIV-attached bioweapon – we need to know.
It matters.
When the truth is discovered, or the most plausible scenario gets mapped out, countries are going to react. The nature of global relations will change… Full Story
By Shah Gilani, Chief Investment Strategist, Money Morning • @ShahGilani_TW - • Print | Email
Our Capital Wave Strategist Shah Gilani has made expert money-flow reads time and again.
So as the U.S. economy and the global financial markets face their biggest possible threat in a century, Bill asked Shah to offer another money flow "read" – and to give Money Morning readers a "spoiler alert" on where the coronavirus pandemic narrative is headed next.
By Shah Gilani, Chief Investment Strategist, Money Morning • @ShahGilani_TW - • Print | Email
The Fed's been taking some desperate measures lately in these desperate times.
But markets haven't fully priced in their rescue and recovery programs for what they really are, which is an admission that "this time is different" and it's too late to stop what's going to happen next.
By Shah Gilani, Chief Investment Strategist, Money Morning • @ShahGilani_TW - • Print | Email
Central banks to the rescue?
Good luck with that.
The U.S. Federal Reserve tried to swoop in and save the market panic with a 50-basis-point cut on Tuesday. But lowering rates, even a "concerted" lowering of rates by several central banks working together, in the face of already low rates, isn't going to be economically stimulative.
Central banks lowering rates now is like opening the barn door after the horses have already bolted.
Lower rates aren't going to get consumers out if they're scared to go out – or if they can't go out. They aren't going to induce capital spending by companies if companies don't know where demand will come from or when it will come back.
Besides, the flight-to-quality trading that's driven hundreds of billions of dollars into U.S. Treasuries, for example, has already lowered rates dramatically.
When the coast is clear and the coronavirus is behind us, central banks will have to start pulling back the stimulus they intend to flood economies with. Markets know that's the other side of lowering rates in an eventually passing crisis.
So no, lowering rates isn't going to put a hard and fast support under weak markets.
Markets are looking at economies and sales and revenue and earnings and profits… and now losses. Those economic realities are reflected in stock prices.
We're not out of the woods yet. But this will tell us when we are… Full Story
We're not out of the woods yet. But this will tell us when we are... Full Story
By Money Morning Staff Reports, Money Morning - • Print | Email
Between Boeing Corp. (NYSE: BA) sinking 6% this week, the 2020 election looming over the economy, and stocks sitting near all-time highs, knowing what to do with your money can seem like a riddle.
That's why FOX Business Network's "Making Money with Charles Payne" put together what Charles called his "all-star" panel to make sense of the market.
It's a discussion you don't want to miss...
By Shah Gilani, Chief Investment Strategist, Money Morning • @ShahGilani_TW - • Print | Email
Some major media outlets are trying to plant in your head that a "manufacturing recession" in the United States will sink the economy and the stock market.
A New York Times headline from this summer pushed the idea that a manufacturing recession will infect the economy: "U.S. Manufacturing Slowed in August in Latest Sign of Economic Weakness."
The Los Angeles Times got on board shortly after, in October: "Manufacturing Is Now Officially in Recession, Despite Trump's Vow to Boost Economy."
CBS then upped the fearmongering, confirming the manufacturing recession as a fact and making it sound viral: "U.S. Manufacturing Is in a Recession. What Does That Mean for the Rest of the Country?"
The problem is that it's all fake news. It's another narrative created by the media to scare you. Believing it can distract you from what's really going on – and stop you from making money.
That's why I'm going to show you the real story – and give you two stocks to buy to keep you away from the "noise" and hand you profits in 2020… Full Story
