Kitty vs. Buzzards

Keith Gill — known online as “Roaring Kitty” — can cause a company’s stock to skyrocket with a single web post.

In fact, his words have proven so influential that E*Trade is considering banning him.

But even if you don’t follow “Roaring Kitty’s” trade recommendations, his actions could still affect your wealth in some surprising ways.

I’ll tell you everything you need to know in a minute.

First, though, let’s look at our Top Stories and the Reader Forum.

Your Top Stories & Analysis of the Week:

• ”Dr. Google Prescribes AI” (Paradigm Pressroom’s 5 Bullets, Emily Clancy): Artificial intelligence (AI) and new drug treatments could soon help anyone suffering from Alzheimer’s disease. Emily shares the details, alongside her usual look at four other top-of-mind topics. Get the scoop on a surprising energy stock breakout… a crypto version of the “barbell” investment strategy… answers to reader mail… and more!

• “Who Really Beat the Germans?” (Daily Reckoning, Brian Maher): Last week was the 80th anniversary of D-Day. And while Byron King shares some insights into the landings, Brian uses the occasion to tie the history of World War II to modern events. With Ukraine using U.S. weapons to strike Russian territory and Russian warships heading to the Caribbean, it’s important to remember who we’re dealing with… and how the world once blundered into a conflict that could have been easily avoided.

• “The G7 Provides Opportunity” (Strategic Intelligence, Jim Rickards): The Federal Reserve isn’t the only important meeting this week. As Jim recently told his Strategic Intelligence readers, Thursday’s “Group of Seven” meeting could have global consequences. The leaders will discuss new ways to punish Russia — and some of the ideas being floated could backfire spectacularly. Few people seem to understand the danger, let alone how it could hit your wallet. This was also our most-liked story for the week. So I’m compelled to unlock Jim’s analysis for you.

Remember, we publish tens to HUNDREDS of stories. The write-ups and presentations above are our TOP ones for the week — including one that had been roped off from the public. If you want to stay ahead of the pack, make sure you’re caught up now.

And if you’d like to nominate any of our stories for next week’s “Top 3,” just let me know at concierge@paradigmpressgroup.com.

The Reader Forum:

First in the Forum today, Omega Wealth Circle member Coralie H. writes Paradigm Pressroom’s 5 Bullets to say:

Thanks to the whole Omega team for providing a daily avalanche of good thinking and good ideas for my brokerage account. I also have loved devouring every training opportunity, most recently Greg Guenthner’s excellent videos. Please, more training! I am like a ravenous beast wanting to be fed your collective knowledge. You have all breathed new life into my 71 years and I am grateful.

I hope you don’t mind me replying to you here, Coralie, because your letter was too good not to share with everyone!

First, thank you for being part of the Omega Wealth Circle — our highest level of service. I’m glad that you’re making good use of your lifetime membership to all of our publications!

And our team is always willing to teach their techniques and strategies. If there’s anything specific you’d like to learn about, drop me a line at concierge@paradigmpressgroup.com.

It could become our next free Wealth Desk report… or even a new service (which we’ll automatically add to the Omega Wealth Circle).

I look forward to your input!

Next, we’re still getting great feedback about our recent Whiskey Bar. Norma I. tells Sean Ring:

I was amazed at the intelligence in that room. It gives me great pride to be a member of Paradigm Press.

Thanks for the compliment, Norma! Sean shared it with the entire team.

And I completely agree with you — our experts really knocked it out of the park at the Watergate Hotel. It makes us all proud of what we do!

If you missed the initial broadcast, or Jim Rickards’ “Scandals, Secrets and Scoundrels” broadcast, we’ve posted them both online.

You can find the video replays and written transcripts right here.

Of course, not everyone was happy with what our team said in Washington, D.C.

Bill D. writes in to say:

Jim is way far out into conspiracy orbit; I honestly cannot listen to his doom and gloom. If he believes Trump is the second coming, he's delusional… He was terrible in his first presidential term. And he's out for revenge now. Because of Jim’s proselytizing, I am becoming delusional with Altucher as an investment company.

I applaud you for speaking out, Bill. And while I’m reluctant to tackle our team’s political views and analysis again, a few of your concerns warrant a response.

First, Jim doesn’t spout conspiracy theories. He gathers data from a wide variety of sources, then analyzes it using proven techniques from the intelligence community.

You can argue that his conclusions may sound far-fetched, but there is always solid research connecting each dot. And while many dismiss his analysis as fear-mongering, Jim actually considers himself an optimist.

That’s because, as he puts it, “there are always ways to prepare and protect yourself against what’s coming.”

In addition, while Jim predicts that Donald Trump will win the White House, he doesn’t think the man walks on water.

Jim made that clear in his “Scandals, Secrets and Scoundrels” broadcast.

“I think my track record as a Trump supporter is pretty good,” he says. “But I’m also a very severe Trump critic.”

As for Jim’s opinions influencing your opinion of James Altucher…

Paradigm Press is all about bringing you a wide range of viewpoints and perspectives. We don’t think you can succeed by living in a bubble. So we strive to deliver multifaceted insights you won’t find anywhere else.

There is no “party line” here. No censorship. Members of our team run the full political spectrum.

While we don’t always agree with each other, we do respect everyone’s right to have separate opinions. (See today’s Water Cooler for a perfect example.)

And it simply doesn’t make sense to think less of James because you don’t like Jim’s independent analysis. “Guilt by association” is the complete opposite of everything we stand for.

That wraps up this week’s Reader Forum.

Remember, your feedback is vital to our success… so please email me at concierge@paradigmpressgroup.com.

Questions? I’ll get answers! Comments? Let me hear them! Problems? I’ll try to solve them!

This is YOUR forum!

(And don’t forget, we also have a FREE library of introductory investment guides on our Wealth Desk. For customer service issues, please use our contact page.)

Now, here’s what’s happening around the water cooler this week…

The Water Cooler — Upcoming Events and More

Keith Gill, also known as “Roaring Kitty,” specializes in creating “short squeezes.”

He buys stock in companies that the Wall Street elite expect to fail. Then he hops on his social media accounts, telling his thousands of followers to buy, too.

They create a buying frenzy — forcing traders who have standing bets against Gill’s picks to cover their positions.

The only way they can do that is by buying shares of the stock themselves. The elite lose money while sending the stock shares even higher.

Short squeeze strategies are nothing new, of course. But Gill has taken them to an entirely new level.

In fact, E*Trade, which is owned by Morgan Stanley (MS), thinks Gill is manipulating the markets. So the brokerage is considering banning him from making any more trades.

As Dave Gonigam detailed in last Tuesday’s 5 Bullets, our team has mixed feelings about that. 

The debate continued throughout the week.

Alan Knuckman says, “it’s no different than what Goldman Sachs does every day.”

Sean Ring points out that political leaders like Nancy Pelosi make millions by trading shares of government contractors and companies Congress wants to legislate.

He implies that Gill is gaming the markets in a similar way.

But Zach Scheidt still believes there’s a big difference.

“if anyone takes a position based on expected or fundamental value,” he says, “then shares their opinion — while disclosing his position — that’s fine.”

But Gill just wants to “drive the price higher and rip the face off those short-sellers.“

Zack says, “that seems like clear market manipulation and fraud to me.”

And while short-sellers may seem like buzzards, circling overhead as a business slowly dies, they’re performing a necessary service.

“Without them,” Zach tells us, “you wind up with dead bodies all over the place.”

Dan Amoss agrees.

“Short-sellers act as brakes in a falling market,” he explains. “If none are left, you don’t have their natural bids as they look to cash in on their short positions.”

In other words, when stock prices plummet, short-sellers step in to prevent the market from falling even further.

And according to The Wall Street Journal, more and more short-sellers are calling it quits.

Chasing off the buzzards means Wall Street’s next downturn could barrel out of control.

But what do you think? Should “Roaring Kitty” be silenced? Or is he a modern-day Robin Hood?

Let me know your thoughts at concierge@paradigmpressgroup.com!