Daily Gains Letter

Luxury Brand Stock

Stocks are separated into different sectors of the economy. Luxury brand stocks are companies that cater to the high-income consumer. Examples of luxury brand stocks are Coach, Inc. (NYSE/COH), Tiffany & Co. (NYSE/TIF), and Ralph Lauren Corporation (NYSE/RL). Firms that cater to the higher-income segment tend to be more correlated with asset prices than other indicators. Higher-income consumers tend to have more of their assets tied to the overall market. With assets that are more sensitive to the stock market, their spending is determined more by capital appreciation and less by general economic data such as employment levels, which hit the lower- and mid-income citizens.


Luxury Brand Retail Stocks: All You Need to Know



Luxury Brand Retail StocksStrangely, Americans are getting richer and poorer at the same time, and this is benefiting the luxury brand stocks. While the number of Americans requiring food stamps is at a staggering 48 million or so, at the other end of the spectrum, the rich are increasing their wealth to new record-highs at a rapid pace. This is what will help the luxury brand stocks—a widening income gap that’s seeing the rich rapidly becoming richer. In 2013, there were about 9.63 million households with a net worth of at least $1.0 million, according to Spectrum Group. Given that the S&P 500 has gone up about 200% during this current bull market, it’s not surprising to see the rise of the wealthy. Add in the in ... Read More



My Investing “Shopping List” for a Tough Retail Environment



The Diamonds Dogs Current Retail SectorThe retail sector is clearly undergoing some duress early on in 2014 as there is a worrisome feeling that the country’s economic growth may be stalling. The first quarter’s gross domestic product (GDP) growth was muted. Retail sales were also soft in April. The core reading showed spending contracted by 0.1% in April after 1.3% growth in March. Of course, economists are not concerned, suggesting the first-quarter retail sales will rise. The winter weather may have wreaked havoc with consumer spending in the retail sector, but it’s now show time; the retailers need to begin to deliver as t ... Read More



My Favorite Pick in the Retail Sector Is Not What You’d Think



Variables Aligning for Retail to Outperform 2013The retail sector can return some amazing gains as we have witnessed since the recession ended—but it can also provide periods of anxiety. How the retail sector performs is dependent on many variables, including the economy, jobs, housing, consumer confidence, interest rates, and even the weather, as we witnessed this winter. There is no tried-and-tested rule on what areas of the retail sector do well. For instance, if you think discount and big-box stores always fare the best, while high-end luxury-brand stocks underperform during times of economic uncertainty, then you are ... Read More



Are Retail Sales Indicators Really as Positive as They Seem?



short-term economic dataDepending on who you ask, sales in the retail sector may be either brisk or failing to gain traction. Like most things in the stock market, when it comes to the retail sector, it’s all about perspective. According to the U.S. Department of Commerce, December retail sector sales advanced 0.2% month-over-month, beating analyst forecasts that expected a one-percent increase. Auto sales fell 1.8%, pulling total retail sales numbers down. Not surprisingly, the weak December auto sales numbers are considered more of a reflection of the bad weather than a weak economy. (Source: “U.S. Census Bureau News: Advanc ... Read More



Four Ways to Profit from America’s Wealthiest Citizens



Wealthiest CitizensHalf of the U.S. workforce is partying like its 1998—and not in a good way. According to the Social Security Administration, the median wage in the U.S. in 2012 was $27,519.10, marginally better than 2011’s median wage of $26,965.43. That said, the median wage remains virtually unchanged since 1998, when the median wage was $27,519.55 when adjusted for inflation. So actually, you made $0.40 less in 2012 than you did in 1998. But I digress. The report shows that more than half of Americans earned less than $30,000 in 2012. Incredibly, 15% of working Americans to ... Read More