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When it comes to making money in the markets, there's nothing like being on the right side of massive disruptions.
Imagine knowing ahead of time how computers, smartphones, and social media would change the world. Or that a mortgage meltdown would bring global financial systems to the brink of Armageddon.
Or that oil would quadruple in 1974, hit $145 a barrel in 2008, and drop to $32 by the end of that year.
How much could you have made riding some of those long-term trends or short-term upheavals?
Millions. If you were playing with institutional money, it would be hundreds of billions.
If you missed out on all that big money, don't worry. You're going to get another chance. Three chances, in fact. Because stocks, bonds, and commodities are going to give you plenty of opportunities in 2018.
Here's what you're going to be able to bet big on and win with this year.
The Biggest Market in the World
The biggest market in the world, the bond market, is about to experience rolling bouts of extreme volatility and reward bond traders in ways they haven't seen in a decade.
And now, with ETFs, you can be a big-time bond trader.
What's happening is monumental. Since the financial crisis in 2008, central banks across the globe have been doing crazy things…
Like throwing money at banks, giving them free money to buy government bonds that central banks then buy from them. (All of which is a neat trick to "monetize" government debt, which had to be issued but would never have found investors willing or able to take down.)
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Like buying mortgage-backed securities and stocks, including U.S. stocks and Japanese stocks that were put into ETFs for Japan's central bank to buy.
Like flooding bond markets with so much money that bond yields turned negative and crazy investors bought them, knowing central banks would make rates more negative, making the negative-yielding bonds investors bought appreciate in price, making them profitable.
Like targeting an inflation rate, completely arbitrarily, at 2%, and then moving the target, the measures of inflation, so they never got close to 2%.
Not only is all of that about to change… It's already started.
The Fed is exiting the quantitative easing game; it's raising rates and going to let the bonds on its balance sheet "run off." That changes everything for U.S. bond investors and traders. And there's a ton of money playing how volatile bonds are about to get.
But what's about to happen in the United States pales in comparison to what's going to happen to bonds and interest rates in Europe and in emerging markets.
All hell is about to break loose, to the tune of about $10 trillion.
Where's that money now? Where is it going? How can you trade its movement to make a fortune? Don't worry; I'll tell you which ETFs to buy and sell, and when and how to reap money – not only from bond gyrations, but from the underlying volatility that's going to drive them up and down like they're on a roller coaster.
That's already started, so I'll tell you what your first trade has to be next week.
Something Big Is in the Works
Investors haven't been paying much attention to commodities, and that's a huge mistake.
There are some very interesting developments in the commodities complex that I've been following, including what an energy expert friend of mine alerted me to.
In a surprising move, the U.S. Department of Energy (DOE) is set to unlock a new $7 trillion energy sub-niche… right here in the United States.
This is something long overdue and could be an extraordinary profit opportunity.
About the Author
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.