Daily Gains Letter

Japanese Economy

The Japanese economy is the third-largest economy in the world, following the United Sates and China. For decades, the Japanese economy has been mired in a deflationary spiral, showing weak and anemic economic performance. The Japanese economy suffered from a bust in the late 1980s. Since then, it has failed to restructure itself and build a new foundation for growth.


Resource Stock Pays Investors to Wait for a Rebound



Stock Pays InvestorsWhen you are looking at your portfolio and considering making adjustments, it’s important to take into account not only the current environment, but what potential changes could occur in the future that can alter your investment strategy. Here’s a perfect example of what I’m talking about: We all know that Japan has been trying to lower its currency in an attempt to stimulate its economy. What’s a side effect of a weaker economy? Higher import prices, and since Japan relies almost entirely on imported energy, costs are rising significantly, which is hurting the average Japanese citizen since wages are not increasing. Just recently, Japan announced that it is now dr ... Read More



How OPEC’s Production Decision Tomorrow Could Affect Oil Prices



OPEC Decision Could See Big Move in Oil PricesIf you are an energy trader, tomorrow will be a big day for you. While it’s also a big day for the rest of the country, which will be celebrating Thanksgiving Day, for many in the oil patch looking for direction on oil prices, it’s also the day the Organization of the Petroleum Exporting Countries (OPEC), aka the “oil cartel,” will decide whether to cut production. A major cut of at least one million barrels per day could send oil prices for West Texas Intermediate (WTI) and Brent crude gushing higher—or, at the very least, preventing them from falling further towards the threatening $70.00 level. On the other hand, a non-move by OPEC could see oil ... Read More



Investors Beware: U.S. Not Immune to Stalling in Global Economy



U.S. Not Immune to Stalling in Global EconomyThe U.S. economy has been showing some positive growth that has helped to propel the stock market higher, but be careful: there appears to be some cracks forming in the global economy to which the U.S. economy will not be immune. Japan reported that its economy fell back into a recession after contracting an annualized 1.6% in the third quarter, representing the second straight quarter of contraction. Part of the blame will squarely lie with Prime Minister Abe and his controversial decision to raise the country’s sales tax from five percent to eight percent in April. I consider the decision to raise the sales tax wrong, as it largely impacts the middle cla ... Read More



How to Profit from ECB’s Attempts to End Economic Slowdown



Economic SlowdownRemember what happened in the U.S. economy when the financial system was about to collapse? The banks weren’t lending to each other, businesses, or even consumers. The U.S. economy was in a deep economic slowdown. Investment banks like the Lehman Brothers had already collapsed and more would follow. Something had to be done or else it would be a disaster situation. When all of this was happening, the Federal Reserve stepped in to save the U.S. economy. It started to use a monetary policy tool called quantitative easing. The idea was simple: print money out of thin air and then buy back bad debt from the ba ... Read More



The Economic Slowdown No One’s Talking About



The Economic Slowdown No One’s Talking AboutIt seems major economic hubs in the global economy are facing hardships, and they are moving towards an economic slowdown. But during discussions about where the next trading opportunity will be, some countries never get mentioned. For example, there is significant talk about an economic slowdown in the Chinese economy and the Japanese economy and how investors can profit. However, the Australian economy goes unnoticed even though it’s facing an economic slowdown as well, and it looks like conditions in the country are getting worse. Unemployment in the Australian economy is increasing. The Australian Bur ... Read More



Japan the Next Big Trade for U.S. Investors?



U.S. InvestorsThe central bank of Japan has taken center stage when it comes to using extraordinary measures to revive growth in an economy. In an effort to boost the Japanese economy, the central bank has resorted to quantitative easing. And unlike the U.S. Federal Reserve, Japan is also involved in buying exchange-traded funds (ETFs) and real estate investment trusts (REITs), not just government bonds and mortgage securities. Unfortunately, the central bank is outright failing. One of the main goals of the Bank of Japan is to inject inflation into the Japanese economy through money printing, aiming for an inflation rate of two percent. Sadly, this isn’t happening; inflation in the Japanese economy is runn ... Read More



How Investors Are Profiting as the Eurozone Crisis Makes a Comeback



Investors Are Profiting as the Eurozone CrisisMajor economic hubs in the global economy are in outright trouble, and each passing day there’s more economic data suggesting the slowdown is holding its own. Investors need to be wary about what’s happening, because it can affect their portfolio significantly. The eurozone crisis, which sent ripple effects into the global economy, is rising again. In the early days of the eurozone crisis, we heard how the economie ... Read More



If It Looks Like a Bubble and Acts Like a Bubble…



Looks Like a BubbleMaybe I’m reading into the economy too much, but the current state of the U.S. economy and Wall Street isn’t adding up. The vast majority of people don’t think we’re in a bubble, including Federal Reserve chair nominee Janet Yellen. Granted, you can only really point to a bubble in retrospect, but still, it certainly looks and feels like we are in one. Talking before the Senate Banking Committee during her first public appearance as Federal Reserve chair nominee, Janet Yellen said she plans to keep p ... Read More