My Answers to Your Most Asked Investing Questions

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It's been a whirlwind of a few months.

I'll be honest: I am not comfortable with this market. Last Monday, the Dow swung more than 1,500 points in one day.

From the month of October, the Dow has swung more than 11,000 points. That's a 41% swing from the top to the bottom. That is a staggering amount of volatility, and I don't think the market is done yet.

That being said, I've received tons of questions from my readers about everything from the role of high-frequency trading (HFT) to what I think about Warren Buffett's bullish stance on the banking sector.

I'm always interested in hearing your feedback, and if you didn't get a chance to ask me something before this issue, you can send me an email here.

Generic Drug Makers Have Been Colluding Against Us – Here's What You Can Do to Fight Back

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To say I'm sick would be a gross understatement.

You've probably been stricken, too – you just don't know it.

I'm talking about the pain being inflicted on us all by some egregiously greedy generic drug makers.

Yeah, those generic drug manufacturers, the ones we've been thanking our lucky stars for because we don't have to pay insanely inflated prices for designer, name-branded wonder drugs.

If you haven't heard, 16 generic drug makers have been colluding (allegedly, of course) to jack up prices of what are supposed to be cheap versions of the brand-name drugs we pay through the nose for.

Now it turns out we're paying excessively for the generics we thought we were so lucky to have.

The Frightening Reason for the Market's Crazy Moves

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If you thought the Dow Jones Industrial Average gapping down at open Thursday, then dropping a heart-stopping 785 points, and then rallying back 709 points to close down only 79.40 points was normal, you might be right.

As abnormal as that sounds, it's not unusual for equity markets to make intraday moves like that.

And while it's not unusual, the truth about how it happens is frightening.

How to Make Volatility Your Secret Profit Weapon

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Volatility comes in all shapes and sizes. It affects every stock, every market, and every asset class, everywhere around the world.

It can be your best friend or your worst enemy.

Either way, as Sun Tzu said, "Keep your friends close and your enemies closer."

But whether or not volatility is your enemy today, tomorrow, or next week, you have to know how to manage volatility in your trading.

Today, I'm going to show you why you have to embrace volatility and how to see it coming.

Here's Why the "Fear Gauge" Shouldn't Frighten You

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The wild swings we see in the stock market aren't the result of volatility.

Volatility results from the wild swings, not the other way around.

One thing investors don't understand is the CBOE Volatility Index (VIX), sometimes called the market's "fear gauge", isn't predictive. It isn't a leading indicator; it isn't telling us what the future holds. It's misleading.

If you didn't know that, chances are you may not understand what's really causing wild market swings.

This Time, the Markets Will Be Different

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With the midterm elections behind us and more divisive politicking ahead of us, it looks like nothing's changed in terms of Republicans and Democrats fighting like, well, bulls and bears.

Only, this time it's different.

Not only are politics going to rip apart the country, perhaps like few other times in America's history, but also bad blood boiling over into hatred will turn Americans (and bulls and bears) into raging lunatics.

The Smart Way to Invest in Facebook

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I'm a huge fan of stocks that go up.

I'm an even bigger fan of companies, like Facebook, whose stock goes up, and keeps going up, for all the right reasons.

That is, until it drops like a stone.

A lot of investors admittedly missed FB on the way up. But a lot of investors who owned it rode it up and smartly got stopped out because they used trailing stops.

If you're either one of those investors or neither, you probably don't want to miss FB's next move up, but don't want to see the stock tumble more.

This Is How You Can Profit in Any Market Condition

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If you were with me at the Black Diamond Conference in beautiful Carlsbad, Calif., last week, or if you watched with us via the live webinar, I hope you found the presentations helpful – and profitable.

But if you weren't with us last week, don't worry. There's still a chance for you to see what my colleagues – Michael A. Robinson, Tom Gentile, and Rick Rule, to name a few – and I were talking about. My team and I will tell you all about it later this week.

In the meantime, I have a special treat for you.

You've been hearing the words "volatility," "crash," or "catastrophe" so often that it's probably starting to get old. That, or worry you more. Either makes sense.

But today, I'm going to share with you something I usually only reserve for readers of my elite trading research service, Zenith Trading Circle. And I don't do this often, folks.

Today, I'm going to give you a peek inside Zenith.

Is the Upcoming Uber IPO Worth the Ride?

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Last week, Uber kind of, sort of announced it was going to go public in early 2019 at a valuation of about $120 billion.

It wasn't Uber directly saying that. It was a Wall Street Journal story that more than likely came from sources at the company.

We can assume the news really came from Uber, because the $120 billion valuation number was based on talks Uber had with potential lead underwriters Goldman Sachs and Morgan Stanley. And they wouldn't have leaked that to the Journal. That number would have had to come from Uber itself.

What Drove the Markets Higher Is Now Knocking Them Down

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Good corporate fundamentals (meaning rising revenues), margins, and profits drove big-cap technology stocks higher. Those factors drove their respective indexes higher, which attracted millions of passive investors into indexed mutual funds and ETF products.

Now, the virtuous cycle that caused markets to spiral upwards could be morphing into a negative feedback loop. But markets in the U.S. aren't going down because fundamentals are deteriorating.

They're going down because market-moving tech darlings stalled out – then rolled over.

I have good news, and I have bad news. The bad news is the selling's probably not over and could get worse.

The good news is, if we fall far enough and fast enough, this sell-off could be a generational buying opportunity.