Daily Gains Letter

Bear Market

A ‘bear market’ is term used to describe an economic condition in which overarching pessimism causes sustained market downturn.  As the bear market continues, pessimism grows the markets descend further.

The downturn can be caused by any number of reasons: poor economic indicators, civil unrest, geopolitical tensions, etc.  Key stock indices such and the Dow Jones Industrials Average, S&P 500, and NASDAQ Composite Index are considered to be in bear market if they see decline of 20% in a month.

What’s Happening in This Stock Market Reminds Me of 1999…

Stock Market Reminds Me of 1999What year is this—1999? Some of you might have been active investors in the bull market during the late 90s, as I was, witnessing the S&P 500 soar during that decade. In fact, the bull market was so strong back then that it created a false sense of confidence, as many people quit their regular jobs to become traders. As we all know, this didn’t last forever and the S&P 500 bull market popped and sold off sharply. Just a couple of days ago, I read an interesting article about how small investors are back, seduced by the bull market, which has resulted in a very strong perfo ... Read More

Why You Need to Stick with the Big Guys Right Now

Proven Companies the Place to Be at This TimeFor investors in small-cap stocks, this year has been quite a different experience from 2013, when the sector was raging and sizzling on the price charts. Small-cap stocks are the laggards this year, with the benchmark Russell 2000 down nearly 14% from its peak and established in a bear market. The selling may be somewhat extreme at first glance but consider that the Russell 2000 surged an excessive 33% in 2013. The reality is that gains like what we witnessed in 2013 were unwarranted; they were driven solely by the easy monetary policy put forth by the Federal Reserve and excess ... Read More

Take These Three Crucial Steps to Grow Your Portfolio

investment strategiesA few days ago, I went out for lunch with a friend whom I haven’t seen in a while. He is an active investor who manages his own portfolio. In the past few years, he has done very well for himself, to say the least; the returns on his portfolio have been amazing, and much better than what the key stock indices have provided. This intrigued me, so I asked him how he was able to do all of this in a fairly short period of time. His response was very short and simple. “You see,” he said, “while many investors look for the ‘ten baggers’ or ‘home runsâ ... Read More

Global Rout in Markets Gathering Momentum?

Global Rout in Markets Gathering MomentumSo this is what it looks like when global investors take their eyes off the Federal Reserve’s quantitative easing policy and focus on the real economy instead! As I’ve been predicting, the global sell-off of stocks looks like it’s beginning in earnest. And you can pinpoint the exact moment investors and economists around the world began to get jittery. It was on May 22, right after the Federal Reserve hinted it might start tapering off its $85.0-billion-per-month quantitative easing policy as early as Labor Day. The global markets h ... Read More

Buying Miners: A Good Idea When Gold Prices Fall?

190413_DL_zulfiqarGold is in a bear market territory. The price of the shiny yellow metal has fallen almost 30% since the highs it made above $1,900 an ounce in April of 2011. Look at the chart below—it seems gold bullion prices have fallen off a cliff.

dl_04192013_graph1Stock chart courtesy of www.StockCharts.com

As there has been a significant decline in gold bullion prices, analysts are projecting many estimates, on both the bear side and the bull side. Some are calling the decline a great b ... Read More