Daily Gains Letter

Economic Analysis

Economic Analysis for 2014

Economic Analysis takes place when an investor evaluates economic conditions through a logical and systematic approach. This type of analysis is done in order to find the underlying trends and investment opportunities. When an economist looks at the state of the economy, they might consider GDP growth, inflation, interest rates, major political events, unemployment, and consumer demand.

An economic analysis can help investors get a general idea of upcoming market conditions and a possible trend reversal.


Top Two ETFs for When Interest Rates Increase, Investor Sentiment Plummets



Top Two ETFsThis past weekend, a friend of mine made a statement that there must be a large amount of economic growth coming shortly because of the booming stock market, driven by investor sentiment. As I told him, the two are not necessarily tied together. Over the past few months, we have heard about how economic growth is about to accelerate here in America, and this has helped drive investor sentiment in the stock market higher. However, I think there are many questions that need to be answered before we can assume economic growth will reach escape velocity, and investor sentiment is heavily contaminated with a large addictio ... Read More



First Step to a Winning Investment Strategy



How to Create a Winning Investment StrategyOne of the more common themes that I keep reading about these days is the strength of U.S. economic growth. It’s important to get at least some understanding of the potential for economic growth, as this will impact your investment strategy. Recent data is definitely making me ask the question: just how strong is the level of economic growth in America? We all know that this holiday season was much weaker than expected for retail companies. Considering that consumer spending fuels the majority of economic growth in America, this is certainly not a positive environment for that sector—but that shouldn’t ... Read More



How Global Debt of More Than $100 Trillion Is Threatening Your Portfolio



Global DebtThere is a recent statistic that is quite shocking: the total amount of debt globally is now over $100 trillion, a jump of 40% over the last six years. According to the Bank for International Settlements, which is run by 60 central banks, since the financial crisis, the majority of the $100 trillion in debt has been issued by governments and nonfinancial corporations. (Source: “March 2014 quarterly review,” Bank for International Settlements web site, March 9, 2014.) You would think that with such a huge amount being issued, it would drive interest rates higher amid a debt crisis. But as we all know, the exact opposite has o ... Read More



What’s Happening in the Copper Market Should Alarm You…



Plunge in Copper Is a Big Warning SignThere is something going on right now in the copper market that should alarm you. Over the past week, the price of copper has plunged, recently hitting a four-year low. Why should this matter? Most investors and analysts are placing bets that economic growth is about to re-accelerate globally. Never before has the world been so interlinked, so we must pay attention to what is occurring internationally. Copper is an important part of the potential for economic growth, not just because it is used in building and construction, but because it is als ... Read More



Greece and Eurozone to Fall Into Economic Turmoil? How to Profit



Greece and Eurozone Fall In Economic TurmoilThere is yet another Greek tragedy playing out across the Atlantic, where legendary poets, mathematicians, scientists, and thinkers once roamed. Fast-forward several thousand years and the country once known for its proud history is cracking at its foundation, burdened by tens of billions in debt and fiscal chaos. (There is a way investors can profit from Greece’s potential demise, but more on that later…)

Syriza Party to Negatively Change Economic Outlook in Eurozone?

Making the situation even more uncertain for this poor cousin in the 19-country eurozone is the recent transformation in power with the left-wing Syriza party, under Prime Minister ... Read More



ECB’s Money Printing a Profitable Opportunity for U.S. Investors?



ECB Money Printing ProgramThe money printing presses may be dry in the U.S., but they are just being inked up across the Atlantic in the eurozone, where they’re beginning to print easy money in the form of euros. While there are both pros and cons to this move, there is the potential for American investors to profit. Recall how the Federal Reserve’s three rounds of quantitative easing (QE1, QE2, and QE3) over the past six years helped the stock market and economy. Of course, there are the negatives with the booming $18.0-trillion national debt.

ECB Introduces Easy Money Printing Program

Looking to avoid a hard landing, so to speak, the European Central Bank (ECB) did just as it was expected to do ... Read More



Declining Commodity Prices Ahead with Weak Global Economy



Profit from Weak Commodity PricesOil may be holding above $40.00 per barrel, but investors shouldn’t get too comfortable. The chart foreshadows oil prices could falter and maybe even drop below $40.00. It’s true that speculation has influenced the direction of oil to some degree, but much of the negative sentiment has to do with a declining global economy that shows some despair. And while gross domestic product (GDP) growth in the U.S. is pretty decent, what we are witnessing in the global economy cannot be saved by what is happening domestically. That suggests weaker oil prices ahead—along with weaker commodity prices overall.

How Stalling in Global Economy, China Will Affect Commodities

The World ... Read More



My Economic Outlook for 2015: New Year Resetting for Fresh Stock Market Gains



Economic Outlook for 20152014 Recap: What Will Affect the Economy in 2015

Looking back on 2014, despite the elimination of quantitative easing and the pending rise in interest rates by the Federal Reserve, it’s clear that the bulls controlled the stock market. In early December, things were looking rough. Stocks were threatening to move lower as the market focused on the economic stalling in China, Japan, and Europe, along with the political and economic turmoil in Russia that could kill the economic renewal in the eurozone and the global economy. However, a positive that sets up well for 2015 is the renewed positive bias that emerged and drove the DOW and S&P 500 to new record-highs. The blue chips were s ... Read More



Global Economy: Why It’s a Year-End “Mess”



Global EconomyHeck, it doesn’t look like Santa will be coming to the stock market this year. The blue-chip Dow Jones Industrial Average (DJIA) fell 185 points on Tuesday, prior to rallying to cut its loss—but this was followed by a 170-point intraday decline on Wednesday. Yesterday, the DOW did rally 63 points, but the index was up more than 200 points earlier in the session, so clearly, the apprehension continues to grip the market. The volatility and stock market apprehension is even more amazing given that the DOW came within nine points of testing 18,000 just a few days back. The mainstream financial media was quickly talking about the DOW at 20,000 and how amazing the stock market bull run was. On CNBC, I heard a stock market ... Read More