Ultrashort S&P 500 Proshares

Trading Strategies

The Absolute Beginner's Guide to Making Triple the Profits in a Downturn

Stocks lurched lower yesterday as nervous investors digested an errant Trump tweet that threatened to blow up U.S.-China trade talks.

Those folks are losing sight of the fact that we're in a different, more dangerous fever swamp altogether – the Fed's "great experiment," cheap-money fever swamp. It's a bizarre place where it's perfectly normal for markets to tank by double digits in one quarter and soar by double digits the next after an announced rate-hike "pause."

Yes, cheap money is a hell of a drug.

Case in point: More than 20% of today's stock "buyers" are actually companies drinking their own cheaply financed, poisoned Kool-Aid.

Expect the resulting $270-plus billion in stock buybacks expected this quarter to push this "most hated of all bull markets" higher… because there certainly isn't a business case for going higher.

As stocks rise, investors are bailing out of equities, where some $132 billion recently left global stock mutual funds for the dangerously deceptive green pastures of the bond market.

Those "green pastures" are now the home of around $1.3 billion worth of horrible "leveraged loans," packing appallingly weak loan documents and egregious terms. These loans threaten to see hordes of bond holders ripped off; they'll be lucky to recover maybe $0.40 for every $1 of bad account they've bought into.

The situation is so dicey that right now, as I write this, teams at Guggenheim and Blackstone's GSO Credit are furiously combing through these horrific bonds in an effort to create their own internal rating system; they're bracing for a tipping point in the equally absurd bond market.

But that's the new normal for you.

And today, I'm going to show you how to get ready for the next normal, when the Fed's cheap-money party ends and markets enter free fall.

If you're ready when this happens, you'll find just as much - if not more - profit opportunity around every corner...


How to Cash In on the Transatlantic "Split" That's Got Nothing to Do with Trump's Tweets

Of course, last week, on June 6, the West marked the 74th anniversary of the allied "D-Day" landings in Normandy, France.

This anniversary, though, was capped off by a G7 summit in Charlevoix, Canada.

Right now, relations – at least, on the surface – between the modern Western allies are mighty frosty, dominated by Twitter and press conference feuds between Canadian Prime Minister Justin Trudeau, French President Emmanuel Macron, and U.S. President Donald Trump, largely over the subject of the multilateral trade war breaking out over protectionist tariffs. Of course, they've largely kept quiet on social media, but it's no secret British Prime Minister Theresa May and German Chancellor Angela Merkel aren't thrilled with Trump's positions, either.

I'm hard-pressed to recall any recent G7 (maybe call this "G6+1") meeting as tense as this one, though a few probably come close.

On the other hand, dispassionate observation and analysis of market action tell us that all this hostility and discord has been baked into prices – discounted.

But our Capital Wave Strategist, Shah Gilani, is watching a "split" of sorts beginning to open up between the United States and the European Union – one that's got nothing to do with politics or soundbites and everything to do with… growth.

I caught up with him to get filled in on the details, but he did me one better…

He told me how to play this emerging situation that's coming and going - there are going to be some pretty big swings...