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    Market Update: How Wall Street Is Swindling Us

    It's a casino designed to take our money
    by Adam Taggart

    Friday, July 17, 2020, 10:29 AM

Stop me if you’ve heard this one before.

GDP falls -35%, the worst quarterly drop in the history of the US economy….and the Too Big To Fail banks make record revenues:

JP Morgan earnings headline

 

Goldman Sachs earnings headline

Got that? Over 50 million Americans have lost their jobs as a result of the economic carnage inflicted by the covid-19 pandemic. And yet the big banks are not only unscathed, but positively swimming in profits.

We live in a system run by the banks, for the benefit of the banks. Regular folks like us are simply grist for its mill.

After all the US Federal Reserve, which wields immense global power and influence as the controller of the world’s reserve currency, is owned by its private member banks. Should we really be surprised how the banks always seem to come out on top?

And while we frequently criticize Fed policy for enriching Wall Street at the expense of Main Street, the banks are also picking our pockets in other ways that the public is largely blind to.

In today’s video, we talk with expert guest Joe Saluzzi of Themis Trading, an expert on high frequency trading (HFT) algorithms. He exposes a whole world of hyperfast technology operating in the markets that most regular investors are completely unaware of and vulnerable to.

Joe’s key takeaway is to realize that the markets, and the financial institutions operating them, are casinos. They have engineered the system to slant the odds in their favor. If you invest your hard-earned capital without clearly understanding the risks in play, then you’re the sucker at the poker table.

And as we do each week, we ask the lead partners at New Harbor Financial, Peak Prosperity’s endorsed financial advisor, to help folks determine how best to invest given the threats Joe details.

We also take a close look at the market action since last week, which may have reached the zenith of its “blow-off top” on Monday. Big Tech, which has driven the euphoric rally since the March lows, has been struggling all week. Netflix just disappointed substantially last night and if more members of the FAANGs release similarly weak guidance in their upcoming earnings calls, the potential sector breakdown we’ve been concerned about could suddenly follow. Suffice it to say, we’re monitoring the situation closely:

Anyone interested in scheduling a free consultation and portfolio review with Mike and John can do so by clicking here.

And if you’re one of the many readers brand new to Peak Prosperity over the past few months, we strongly urge you get your financial situation in order in parallel with your ongoing physical coronavirus preparations.

We recommend you do so in partnership with a professional financial advisor who understands the macro risks to the market that we discuss on this website. If you’ve already got one, great.

But if not, consider talking to the team at New Harbor. We’ve set up this ‘free consultation’ relationship with them to help folks exactly like you.

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11 Comments

  • Fri, Jul 17, 2020 - 11:29am

    #1
    MKI

    MKI

    Status: Member

    Joined: Jan 12 2009

    Posts: 193

    1+

    Another intelligent & well-orchestrated interview

    Perfect guest! Learned a few things that I didn't expect. Comments:

    1. I'm now even more confident that investing in and out of individual, dividend-paying stocks using a value-based formula is the way to go today. As the guest says, "buy value" and never "trade" or you will lose your shirt. Rather, as the guest also says, play "your game". Or: never uses a Market Order, but always just buy & sell at a pre-decided, specified price. This bypasses the traders completely.

    2. Neat discussion on Spoofing. I thought he was very fair, how markets can be moved with very little firepower and unclear legality.

    3. Good discussion on how the futures market and main markets don't relate to each other. The answer here is of course to buy value only, never buy momentum.

    4. I do get frustrated about all the "fairness" concerns. Of course it's not fair! It never was. This is not a crisis but an opportunity. Rather than complaining one is better off just tagging along. I also get frustrated at all the fear of this distorted market. This is the new normal, and stocks own all our production. The Fed was and has been a mess since 1913. when it was created in an orgy of corruption. And yet many guys made lots of money in stocks over the years, even in 1929. Lots of value there, even now.

    5. Great guest. Great interviewing.  Still a fan of this interviewing style and Adam's talent stack.

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  • Fri, Jul 17, 2020 - 12:27pm

    #2

    000

    Status: Bronze Member

    Joined: Dec 10 2013

    Posts: 128

    An Interesting Supplemental Perspective [audio]

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  • Fri, Jul 17, 2020 - 12:46pm

    Adam Taggart

    Status: Platinum Member

    Joined: May 25 2009

    Posts: 5052

    Trade Like A Criminal

    MKI wrote:

    5. Great guest. Great interviewing.  Still a fan of this interviewing style and Adam's talent stack.

    Many thanks for the kind words, MKI.

    The goal of this weekly Market Update series is to surface insights that make us better informed investors. I'm pleased to learn you found some useful gems in this interview.

    To your point about "tagging along", since my early days working with Chris he's often proposed that "trading like a criminal" (i.e., using their unfair advantage to your advantage) just might be one of the most successful strategies to adopt.

    My opinion is that works great right up until things unexpectedly break. Just remember that, when that happens, the banks/criminals will get bailed out...but you won't  🙁

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  • Fri, Jul 17, 2020 - 1:54pm

    #4

    Mark_BC

    Status: Bronze Member

    Joined: Apr 30 2010

    Posts: 386

    4+

    Mark_BC said:

    I still don't understand how anyone could lose their shirt in this market unless they are doing something foolish. Invest a maximum of + / - 50% of your tradeable assets at a given time in calls for the darling stocks; make overall 30% return per week. If the market crashes and your active positions go to zero (worst case scenario) then all you lose is the previous 2.5 weeks of earnings. Hardly your shirt.

    I still don't see how AAPL and MSFT and other similar stocks have experienced a blow off top. Please show charts explaining this. TSLA is more speculative and a casino. Trade it at your peril.

    As a "novice" investor I seem to be greatly outperforming all these more sophisticated parties. I've easily made more than my initial investment even accounting for the disaster of the CoronaCrash. I guess I just got lucky (20 times in a row?) Or maybe, just maybe, I've identified a trend that others don't want to admit and am capitalising on it which will continue to work, until it doesn't.

    Joe is talking all about about fundamentals and real value. Since when did that matter? You guys have been repeating this for over 10 years while the stock market has continued to go up and up and up, with a few intermediate corrections along the way. No one should be in the market based on "fundamentals and real value". The only reason to be in the stock market is to take advantage of Fed manipulation.

    You are analysing this market in the eyes of the tulip mania. Well now we have the Fed openly admitting that they are printing and buying stocks. The PPT and ESF are supporting everything. The stock market could completely crash tomorrow. It should have completely crashed 10 years ago. But it didn't. Because the PPT supports it. The market might crash on Monday but not because it is overinflated with retail investors. It will crash because the PPT decides to stop supporting it -- maybe because they want to harvest some retail investors. I'll need more than this slight correction in the last couple days to convince me we are there though.

    Where was PP back in April advising people to get into the market?

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  • Fri, Jul 17, 2020 - 2:04pm

    #5
    pokjbv

    pokjbv

    Status: Member

    Joined: Sep 09 2017

    Posts: 15

    3+

    pokjbv said:

    Why this is a SCANDAL, it's an OUTRAGE, sombody ought to DO something about this!

    The last time anyone seeriously tried to take these people on he had his head blown off at Dealey Plaza in Dallas.

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  • Fri, Jul 17, 2020 - 5:06pm

    #6
    dryam2000

    dryam2000

    Status: Bronze Member

    Joined: Sep 06 2009

    Posts: 396

    3+

    From Zerohedge....since May 1

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  • Sat, Jul 18, 2020 - 8:07am

    #7
    Steve

    Steve

    Status: Bronze Member

    Joined: Jun 27 2009

    Posts: 152

    1+

    Since COVID, the treasury has accumulated an approx $1.5 trillion (potential PUT) they can inject just in case the FED/PPT pulls the rug out before the election.

    Take a look at the U.S. Treasury General Account.  In just a short time, the US Treasury has accumulated approximately $1.5 Trillion.  This is a new "treasury put" different from the "fed put."  Some speculate we will see it begin to get injected 2-3 months before the election in an effort to secure the election for a particular party.  I haven't heard you mention it in your interviews and I believe it is a significant control factor to consider. George Gammon discusses it in his youtube post entitled "Secret Government Plan for Stock Market Hyper Bubble (revealed)."  It is worth a listen.

    The US Treasury has accumulated approx. $1.5 trillion in just a short time.

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  • Sat, Jul 18, 2020 - 9:11am

    #8
    dryam2000

    dryam2000

    Status: Bronze Member

    Joined: Sep 06 2009

    Posts: 396

    1+

    Yield-curve control, higher inflation target & the Fed

    Over at tfmetalsreport.com (an excellent metals and overall financial landscape website btw) Craig Hemke posted this link on Bloomberg that discusses possible increase in the inflation target by the Fed.  It also talks about yield-curve control by the Fed which has been floated out over the past couple of weeks & has been discussed by the Fed internally.  The Fed has expressed numerous times that they do not foresee pursuing negative interest rate policies, and they can never afford to have interest rates go up given the monstrous debt loads.  Seems like there certainly may be some merit to this Bloomberg article.  Negative real interest rates is the strongest fundamental support for rising gold prices.

    https://www.bloomberg.com/opinion/articles/2020-07-17/the-fed-is-setting-the-stage-for-a-major-policy-change

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  • Tue, Jul 21, 2020 - 7:30pm

    #9
    dryam2000

    dryam2000

    Status: Bronze Member

    Joined: Sep 06 2009

    Posts: 396

    2+

    Silver & gold are ripping higher

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  • Thu, Jul 23, 2020 - 8:06pm

    #10

    000

    Status: Bronze Member

    Joined: Dec 10 2013

    Posts: 128

    Keiser Report | Pouring Money into Losing Money

    In this episode of Keiser Report, Max and Stacy discuss the ongoing trend to pour (stimulus) money into companies losing the most money as 38% of the Russell 2000 listed companies are losing money and those losing the most are gaining the most in stock price. In the second half, Max interviews whistleblower and financial educator Charlie Boyle about the young investors piling into bankrupt companies, and what that tells us about the state of the markets and the money printing induced hysteria.

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  • Thu, Jul 23, 2020 - 8:51pm

    #11

    Barbara

    Status: Member

    Joined: Dec 15 2009

    Posts: 159

    1+

    DOL proposed restriction of factoring ESG considerations in ERISA-regulated retirement plans

    Your helpers from Washington at work again.  If you are in the ERISA space, you can no longer offer people sustainability investments, but you can push plans that force full investments in high risk wall street con games.

    https://us02web.zoom.us/webinar/register/WN_dgs6PzEkR-SYrXpUd-Rz1A?eType=EmailBlastContent&eId=af894a59-e65c-49cd-93e1-ad3e392382d3

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