The Powerful Shadows Running Today’s Market
Dear Rundown Reader,
A week from today, on Friday July 20, Ray Blanco’s set to release to you the results of his most important investigation, ever.
It’s the most important because it could end up scoring you over $10 million in gains.
That’s an absurd amount of money.
Ray calls it the “World’s Fastest Fortune” and told me recently the tiny company behind it could hit a “$100 billion valuation” faster than any other company in history.
It’s an incredible story. Ray’s spent years on this.
A week from today, on Friday July 20, you’ll get a first look at what Ray found. I’ll also share more details on the “World’s Fastest Fortune” between now and then.
On to today’s Rundown…
Lobbying has made its way to Wall Street in a big way. Today’s Rundown shows what this means for you.
Your Rundown for Friday, July 13, 2018…
Powerful Lobby Group Takes Hold of U.S. Market
There’s a powerful new force at work in the market.
It’s the activist investor.
The Wall Street Journal reports Lazard found activist investors spent $40 billion across 136 companies in the first half of this year.
That type of money moves the market. And it could affect your money too.
Activist investor is a soft term.
Let’s be honest. They’re deep pocket lobbyers.
They hang out on Wall Street instead of Pennsylvania Ave.
An activist investor takes a large stake in a company they see as underperforming. Then they leverage and twist management’s arm to make changes in hopes of driving up the stock’s value.
Whether those changes are good for you and me, the market or the planet has nothing to do with it.
It’s a soft term.
These folks have a lot of power and they’re not afraid to wield it.
According to the Journal, activist investors won a record 119 directorships in the first half of 2018.
In the past, activist investing was frowned upon and CEO’s rarely caved to their demands.
Large investment firms, who preferred not to rock the boat publicly, also stayed away.
But that’s all changing.
William Anderson of Evercore notes to the Journal: “Boards are feeling more pressure because actively managed funds are increasingly supportive of activist campaigns.”
And not necessarily to the benefit of shareholders.
“For all their success effecting change, activists don’t always generate the best returns for their own investors,” notes the Journal.
It was a good PR move, getting themselves branded as “activists.”
But the only thing these folks care about is their own profits.
Now, turning to the markets this morning…
Market Rundown for Fri., July 13
Yield on the 10-Year Treasury sits at 2.844% this morning, down 0.009.
S&P 500 futures are up 1.25 at 2,799.
Oil’s flat at $70.57.
Gold’s down $8.50 to $1,238.
Bitcoin goes for $6,253 this morning, according to CoinDesk.
We’ll talk again on Monday.
For the Rundown,