| Adam O’Dell, Chief Investment Strategist Managing Editor’s Note: If you aren’t tuning in to our Ask Adam Anything videos each week, you’re missing out! Our chief investment strategist has incredible insights into what’s moving markets. And Adam shows you how to invest around what he’s seeing. Click here to make sure you’re subscribed, and read on to see what Adam talked about this week.
My Twitter feed is going bananas over this major bank's clerical mistake. Look, the bank has already admitted its mistake to the SEC, and it's calculated that it will take a loss of nearly $600 million … all because of this clerical mistake. But I estimate that the fallout could be much larger if things really hit the fan. It is almost guaranteed that this bank will lose upward of $600 million fixing this clerical mistake, but it could lose another $150 million in revenue per year. The bank is already 35% less valuable than it was earlier this year, based on its market cap and share price. And if this bank goes belly up, we could see another $33 billion in market cap erased from the stock market. So I've put together a trade to take advantage of this unique situation. And no, we aren’t just shorting Barclays, the British bank in question. More on that in a bit. First, I want to explain what’s going on. We need to answer two important questions: - Could this bank's clerical error delete my grandmother's savings?
- What will be the next shoe to drop in the Barclays saga?
Let’s get into it.  Suggested Stories: Forget the Inverted Yield Curve! Buy This Recession-Proof REIT Hackers Stole $1 Trillion in 2020 — Strong Bullish Tech Co. Fights That Trend
| Tech monsters like Apple, Amazon, Microsoft and many more can no longer avoid doing business with this one company that trades for less than $5... All of them are held hostage by the CEO's brilliant business tactics. And what's even crazier ... is that his tactics reach all the way to the public. He intentionally set up his company's stock under a secret trade name... Did he fool you too? | |
Barclays' $600 Million Mistake Matt: OK, you got my attention. Are you really worried about your grandma's savings though? Adam: Yes, Matt, of course. She's in her mid-90s, and she and my grandpa worked hard for every single dollar they have. In fact, I always think about my grandma’s savings any time I give advice to subscribers. While not all of the trades I recommend are appropriate for my grandmother, I keep that in the front of my mind. Matt: OK. So why is this clerical error debacle threatening to your grandma’s savings? Adam: Well, Matt, check out this section of a recent CNN Business piece: 
(Click here to view a larger image.) Capital Group is one of the world's largest investment firms and parent to the American Funds brand of mutual funds that is popular among millions of U.S. investors and retirement savers. It just sold 399 million shares of Barclays! And this wasn't the only large holder of Barclays stock that dumped shares. In the same article, another unnamed holder of the stock sold 599 million shares of Barclays on Monday evening. They did it in a block trade after hours with Goldman Sachs. And it is just incredible to see large block trades like this selling out of Barclays. Matt: Selling off 900 million shares in a day? That hurts. So why are these large Wall Street investors, some of whom manage money for older Americans and retirees like your grandma, for example, bailing out of Barclays? Adam: Look, Matt, no joke. It's all because of a clerical error. Click here to read more about this silly error and how it sets up a lucrative trade. Suggested Stories: There Is No Millennial Investor Market Revolution 9.7% Dividend Crushes Treasuries and Stocks
| Mysterious tech could soon "delete" diseases from your body … and make a tiny Silicon Valley company soar high. | |
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1720: Shares of South Sea Company traded publicly for the first time with permission from the British royal family. It was the beginning of the South Sea Bubble, one of the most famous bouts of market speculation in history. | |
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