Daily Gains Letter

Debt Crisis

Debt Crisis Forecast and Analysis for 2015

The roots of America’s financial crisis can be traced back to 2007 when the U.S. housing bubble burst.  This sent the dominos tumbling and the United States into an economic meltdown in 2008.

Since November 2008, the Federal Reserve has initiated three rounds of Qualitative Easing, and has printed off trillions of dollars; and continues to print off money at an alarming rate.  In spite of government intervention, the economy has sputtered and slipped in and out of recession.

What’s keeping the U.S. economy afloat?  The Federal Reserve is artificially propping up the entire U.S. economy by buying a majority the government debt issued by the Treasury Department.  As a result, the U.S. government has become dependent on borrowing to finance itself.

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

Banks a Better Play Than Market-Leading Tech Picks?

Bank Stocks Are Now Looking Good for InvestorsWhile it’s well known that technology has led the broader stock market higher, there is a safer and more conservative play for investors at this time, according to my stock analysis. Where? Investors may want to take a glance at the banking sector. Banks have dug themselves out of the financial crater that was imposed on the group by the sub-prime debt crisis back in 2007, which sent the global economy and banks into a massive tailspin, as is well represented in my stock analysis. But that was then. As my stock analysis indicates, the banking sector has been rallying over the p ... Read More

Eurozone Recession Over, They Say; Time to Consider Investing There?

Eurozone Recession OverNo matter what the overarching economics are in the U.S., the fact of the matter is that you really can’t beat the Federal Reserve. Sure, unemployment and underemployment are high, consumer confidence is down, personal debt is high, and housing prices are still 25% below their 2006 highs, but with the Federal Reserve dumping $85.0 billion per month into the markets and keeping interest rates artificially low, the markets can’t help but rejoice. And until those two dynamics change, the markets will continue to rally, with the odd pullback—which, for m ... Read More