Three of the biggest names in finance and the markets - Bezos, Buffett, and Dimon - are looking to give Big Pharma and healthcare what our Tim Melvin calls a "buggy whip moment."
If you were decorating for the holidays or glued to NFL games last weekend, you might have missed some massive news: CVS Health Corp. announced it'd buy Aetna Inc. for a cool $70 billion.
Of course, the deal had been discussed as a possibility for weeks, but it's finalized now - it looks for all the world like it's going to happen.
In the press release announcing the deal, CVS Health President and Chief Executive Officer Larry J. Merlo said, "This combination brings together the expertise of two great companies to remake the consumer healthcare experience. With the analytics of Aetna and CVS Health's human touch, we will create a healthcare platform built around individuals."
That's putting it mildly. And, in a turn I find completely unsurprising, Wall Street is downplaying and even dismissing the deal.
I think that's a huge disservice to the public. Because I think this deal is one of 2017's biggest.
It's going to be transformational... and a potential goldmine.
Every quarter, I take the time to review the conference calls of the biggest American banks.
I don't own the stocks, of course, and in most cases, I never will.
See, I am a huge fan of small banks. And I've made an unreasonably good deal of money there.
But we all have to live in the world, and the big banks have come pretty close to blowing up that world several times during my decades in the market. I don't trust them. It's like the guy sleeping next to the elephant. You don't have to be married to the elephant, but every twitch and grunt is going to impact you severely.
Oh, these bankers talk a good game about "building trust" in "the community," but at the end of the day, they'd securitize Mongolian horse droppings, package them together with North Korean nuclear industry futures, slap a AAA rating on it, and sell that "product" to every pension fund and grandmother from sea to shining sea if they thought it would boost their return on equity by 40 basis points.
Their valuations are completely opaque, too. I remember in the 1990s, Warren Buffett said that if he were teaching a course on value investing, he'd ask the class to value an Internet company. Anyone who turned in an answer - any answer - would fail, he said.
I feel exactly the same way about these "too-big-to-fail" banks with trading operations. So many of their assets are valued at mark-to-model, or "mark-to-anyone's-best-guess," that it's impossible to tell what they're worth.
The footnotes of these banks' filings would make a rocket scientist weep.
Still... the fresh memory of the financial crisis should tell you: Every investor ignores these elephants - and the $11 trillion in assets they control - at their own peril.
When it comes to building wealth, retirement planning, or any other endeavor involving money and investing, the person across the table from you - your broker - is not your friend.
He will tell you he is. She may even want to be your friend. This individual could be convinced they are helping people to achieve their lifelong goals. And they will almost certainly be friendly.
But, at the end of the day, the broker is a salesman, and his or her compensation is coming right out of your nest egg.
Now, I'm not going to tell you to "break up" with your broker or that they're a bad person; I'm not out to demonize the folks who sell investments for a living. Not at all.
In fact, it's in your best interest to continue your friendly association with your broker.
I'm telling you this because I want to level the playing field. So that next time you sit across from your broker, you're in control. Eyes open.
Ultimately, when you control that dynamic, you come out ahead.
There's a widening wealth gap in America. It took a generation, but the middle class in this country has been hollowed out.
Most people agree on that.
But they don't really know how it happened or who's really to blame - it's been obscured with false narratives, covered with "fake news."
The thing is, the truth's in front of us. We're living it in real time. It's just never discussed openly - for a reason.
The people who are behind this catastrophic American collapse have fooled folks into thinking this is all normal.
Well, it's anything but that...
Every new year is ripe with promise, and 2017 seems to hold more promise than most - at least for some people.
But I've got a few simple ideas that could make it a great year - many great years - for all of us.
And I mean one of the best, most prosperous years in American history...
Most investors believe that Wall Street is rigged in favor of the big traders and that they'll never win.
I have misgivings about Wall Street. Their short-term trading distorts the energy markets, almost beyond recognition.
Indeed, the past year has shown clearly how disastrous such speculation can be. But there is a way to remedy this situation: You.
Stock buybacks represent one of the most insidious bits of financial engineering in the markets - executives claim that they're returning money to shareholders when they're really lining their own pockets.
So far in the Q1 2016, companies have spent a combined $146 billion on repurchasing shares. In fact, more than $2 trillion has been spent on buybacks since the financial crisis.
Many investors really start to study the markets this time of year in an effort to divine what's next for global markets and, by implication, their portfolios.
But for an accurate financial forecast, I turn to the world's top steak houses, which are known haunts for global traders anxious to blow off some steam and have a fabulous meal.
Today I'm going to talk about what's not"on the menu" - pardon the pun - and why. Then, I'll highlight an investment poised for profits as a result.
Here's what waiters can tell you that economics can't.
While half the trick of investing is figuring out what the consensus thinks, the wisdom of crowds is a myth when it comes to the markets.
Case in point, Valeant Pharmaceuticals has cratered since October 2015, but many investors cling to the belief that the company's problems will be solved.
Some hedge funds have (or had until the stock collapsed) as much as 20% to 30% of their capital in the company, which is extraordinarily reckless.
But it's all in the numbers. The masses are missing these figures, but you don't have to...
The conventional "wisdom" holds that a bear market can't happen until losses hit 20%.
But that's a carefully designed, often-repeated Wall Street lie that's supposed to trick investors into sitting tight when they should be changing tactics.
After last week’s strong finish, it’s no shock that Wall Street’s starting to make encouraging noises about “recovery.” But when did those folks ever tell you the truth?
There are two signals that never lie. They always light up before the market crashes.
During last night's Democratic debate, Vermont Sen. Bernie Sanders said a few things about Wall Street that made us stop and think.
Whoa, we might actually agree with a politician about something.
Here's what Sanders had to say about Big Banks and their cronies on Capitol Hill...
For most investors, the relationship between investing and profits seems simple enough. You buy low, sell high, and your portfolio grows - or so goes the story.
In reality, success ultimately comes down to defeating Wall Street's secret weapon: something called "Gambler's Ruin."
Understanding what it is and how to beat it will give you an edge other investors would pay dearly to have. Not one in 250,000 understands it.
