Share This Article

Facebook LinkedIn
Twitter Reddit
Print Email
Pinterest Gmail
Yahoo
Money Morning
×
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • Angel Investing
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
  • Retire
    • Income Investing Guide
    • Retirement Articles
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
Login My Member Benefits Archives Research Your Team About Us FAQ
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • Angel Investing
    ×
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
    ×
  • Retire
    • Income Investing Guide
    • Retirement Articles
    ×
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
    ×
  • Subscribe
Enter stock ticker or keyword
×
5 Ways to Beat the Fed (and Crush Inflation)

Email this Article

Send with mail | ahoo instead.
Required Needs to be a valid email
Required Needs to be a valid email
The Answers You've Been Looking for, All in One Place
https://mney.co/2nUhiQM
Required Please enter the correct value.
Twitter
Stocks: ALL, FOR

The Answers You've Been Looking for, All in One Place

This expert insight from Shah Gilani originally ran in Wall Street Insights & Indictments on April 4, 2017

Start the conversation

Comment on This Story Click here to cancel reply.

Or to contact Money Morning Customer Service, click here.

Your email address will not be published. Required fields are marked *

Some HTML is OK

Shah GilaniShah Gilani

Over the past couple of weeks, I have been focusing on the growing issue between passive investing and bloated ETFs... and I've gotten some great questions from readers who want to know more.

When this crash comes, whether it's a "flash crash" or far more serious, I want my readers to be prepared to rake in serious profits while everyone else is in free fall. And I'm happy to take the time to address your specific questions if that means you will all be ready.

Here's exactly what you want to know about the coming ETF crisis, mutual funds, IPOs, and more...

If the coming crisis with ETFs is so obvious, why doesn't anyone else seem to see it? - Anish

Good question! There are reasons hardly anyone is focusing on these very serious issues. Firstly, the "out of sight out of mind" people foolishly tend to believe that if it's out of sight, it must have been fixed.

It's frightening, but we never got an answer as to what caused the May 2010 flash crash. We recovered, and there was a lot of hand-wringing for a short while... then nothing. It's like it never happened, or since we bounced right back it must not have been a big problem, or it was addressed and we don't have to worry about it. This is just not true.

The same faulty logic applies to the Aug. 24, 2015, market opening and then total flameout. Some stocks didn't open, lots of ETFs couldn't be priced, prices fell through cracks in floors no one knew existed, and stop orders got ripped through and filled substantially lower than investors expected. Was that all fixed? Heck no. But because it hasn't happened again, people think it was figured out and fixed. NOT so. At all. It was just swept under the rug. So, if out of sight is out of mind, then why worry about something that's thought to have been fixed?

Secondly, the growth of ETFs is so good for business, no one is willing to stop that train or stand in front of it. That includes ETF regulators. But putting your head in the sand can only last so long. Eventually you suffocate, and when you come up to see what the landscape looks like, you may not recognize it. That's what we're going to see one day soon.

Are there any ETFs that seem safer than the ones you mentioned, like SPY? Is there a way to passively invest without contributing to the crash you see coming? - Carol

No. None of them are safer than any others. As my dear mother used to say, "They're all tarred with the same brush."

The nature of ETFs - being derivatives of underlying stocks, which are often glued together as indexes - guarantees that any strong selling of the underlying issues will cause the derivatives to react. And it's faster to sell the derivatives than all those individual underlying stocks, …

 

Join the conversation. Click here to jump to comments…

Shah GilaniShah Gilani

About the Author

Browse Shah's articles | View Shah's research services

Shah Gilani boasts a financial pedigree unlike any other. He ran his first hedge fund in 1982 from his seat on the floor of the Chicago Board of Options Exchange. When options on the Standard & Poor's 100 began trading on March 11, 1983, Shah worked in "the pit" as a market maker.

The work he did laid the foundation for what would later become the VIX - to this day one of the most widely used indicators worldwide. After leaving Chicago to run the futures and options division of the British banking giant Lloyd's TSB, Shah moved up to Roosevelt & Cross Inc., an old-line New York boutique firm. There he originated and ran a packaged fixed-income trading desk, and established that company's "listed" and OTC trading desks.

Shah founded a second hedge fund in 1999, which he ran until 2003.

Shah's vast network of contacts includes the biggest players on Wall Street and in international finance. These contacts give him the real story - when others only get what the investment banks want them to see.

Today, as editor of Hyperdrive Portfolio, Shah presents his legion of subscribers with massive profit opportunities that result from paradigm shifts in the way we work, play, and live.

Shah is a frequent guest on CNBC, Forbes, and MarketWatch, and you can catch him every week on Fox Business's Varney & Co.

… Read full bio

Login
guest
guest
0 Comments
Inline Feedbacks
View all comments
LIVE
Visit Money Morning Live


Latest News

January 19, 2023 • By Money Morning Stock Research Team

These Stocks Could Go To $0

January 9, 2023 • By Money Morning Stock Research Team

The Government Is Pouring $391 Billion Into These Stocks - Buy Now

December 27, 2022 • By Money Morning Staff Reports

6 IPOs in 2023 You Can’t Afford to Miss
Trending Stories
ABOUT MONEY MORNING

Money Morning gives you access to a team of market experts with more than 250 years of combined investing experience – for free. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.

QUICK LINKS
About Us COVID-19 Announcements How Money Morning Works FAQs Contact Us Search Article Archive Forgot Username/Password Archives Profit Academy Research Your Team Videos Text Messaging Terms of Use
FREE NEWSLETTERS
Total Wealth Research Power Profit Trades Profit Takeover This Is VWAP Penny Hawk Trading Today Midday Momentum Pump Up the Close
PREMIUM SERVICES
Money Map Press Home Money Map Report Fast Fortune Club Weekly Cash Clock Night Trader Microcurrency Trader Hyperdrive Portfolio Rocket Wealth Initiative Extreme Profit Hunters Profit Revolution Warlock's World Penny Nation Quantum Data Profits Live Trading Alliance Trade The Close Inside Money Trader Expiration Trader Vega Burst Trader Flashpoint Trader Darknet Hyper Momentum Trader

Ā© 2023 Money Morning All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning.

Address: 1125 N Charles St. | Baltimore, MD, 21201 | USA | Phone: 888.384.8339 | Disclaimer | Sitemap | Privacy Policy | Whitelist Us | Do Not Sell My Info

wpDiscuz