Daily Gains Letter

Real Estate

Real estate is comprised of land and any holdings within a particular property. Real estate can include homes, which would be residential real estate, building and offices, which would be considered commercial real estate, and any natural resources contained on the property. Real estate is a large and integral part of any economy. There are many jobs both directly and indirectly associated with the real estate market. The price of real estate is essentially determined through two measures: income and interest rates.


Why Gold Looks Good to Me in 2014



Gold Looks Good to Me in 2014Just the other day, I was talking to a friend of mine who seemed extremely cheerful. I asked why, and he said that his investments have performed well over the past few months and he saw no reasons to worry. This is a common problem with investor sentiment; people tend to become complacent and only look to the recent past as an indication of what tomorrow will bring. This is quite dangerous. Investor sentiment is often wrong and can be used as a contrary indicator, buying when others are dumping their stocks and taking profits when others are blissfully unaware of the changing land ... 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



Two Small-Cap Plays for the Real Estate Rebound



Two Stock Picks for a Strong Housing MarketFor those who believe the housing market is set for a downfall after running higher for five years, you may want to rethink that. The reality is that the housing market is faring quite well right now, boosted by decent jobs growth—more than 200,000 monthly for the majority of 2014—and an unemployment rate at 5.8%. The fact that the financing costs for the housing market remain historically low translates into what has developed into a healthy demand for new home builds and resale. In the housing market, the news continues to be good. The key housing starts metric came in at an annualized 1.009 million in October. This was slightly below estimates, but non ... Read More



How to Profit from This Housing Market Oversight



How to Profit from Improving Homebuilder SentimentThe housing market continues to show growth and offer a good buying opportunity. While the major upward push in the housing market may be behind us, I still see opportunities. As long as interest rates and mortgage rates remain relatively low, you can expect the support for the housing market to hold for the next few years. While housing starts and building permits numbers continue to be fairly strong, the National Association of Homebuilders (NAHB)/Wells Fargo Housing Market Index (HMI), which reflects the confidence of the homebuilders, increased to a healthy reading of ... Read More



What’s Really Behind the Headlines for May’s Surging Home Sales



The Truth Behind May's Stellar Home Sales HeadlinesJudging by all the headlines alone, you’d conclude that the U.S. housing market is in full recovery mode (it isn’t) and that the U.S. economy is heading in the right direction (it’s not). In response to existing-home sales data, USA Today’s headline read “Existing home sales up 4.9%; best gain since ’11;” CNBC’s headline declares “US existing home sales, inventory surge in May;” and The Wall Street Journal opines “Existing Home Sales Rise Strongly in May.” Is the hype justified? Not if you dig below the headlines. First, the (so-called) good news. According to the National Association of Realtors, existing-hom ... Read More



How to Safeguard Your Portfolio from the Coming Housing Crisis



Housing Market Fragile Despite Above-Average Potential HomebuildersThe housing market has enjoyed a boom that’s lasted several years as prices have ratcheted upward toward the 2008 highs, prior to the subprime mortgage meltdown. Now, while the housing market has been fairly steady with above-average price appreciation potential in homebuilder stocks, I still think we could be headed for some issues on the horizon. Some would argue that the housing market is coming off a strong April, with the housing starts reading at 1.07 billion, well above the consensus 975,000 and the 947,000 in March. Building permit ... Read More



Three-Year Home Price Rally a Half-Truth?



Why the Housing Decline Is No SurpriseHousing prices were shooting up since 2011, as if a downslide would never return to the housing market. Meanwhile, my colleagues and I warned investors of a slowdown in activity that could jeopardize the housing market. The authorities at the Federal Reserve then were confident of an economic recovery and took increasing housing prices as a bellwether of economic progress. During the last winter, home sales declined sharply and everything was blamed on the frigid temperatures, implying the housing market would grow once the season was over and done with. When I last wrote about the U.S. housing ma ... Read More



What’s Handicapping First-Time Homebuyers?



First-Time HomebuyersFor months and months now we’ve been pointing to seemingly obvious economic data to prove that the U.S. housing market is in trouble because of the weak U.S. economy. Those in the “know”—economists and the real estate board—have been waxing eloquence on how the weather is the main culprit behind the disappointing U.S. housing market numbers. The National Association of Realtors (NAR) said existing-home sales in December were adversely affected by bad weather in many areas. Sales of existing homes in January were down 5.1%, reaching their lowest levels in 18 months. At the time, the NAR echoed i ... Read More



Sin Stocks Posting Impressive Gains in Struggling U.S. Economy



Why Sin Stocks Are Where the Money Is in This Stock MarketAs the investing adage of the day goes, “When the going gets tough, the tough get eating, smoking, and drinking.” And there’s plenty of tough economic data out there to send people into the arms of their favorite vices and sin stocks. In a nutshell, U.S. unemployment has improved year-over-year to 6.7%, but the improved numbers are the result of an increase in low-wage-paying part-time retail jobs. The underemployment rate remains high near 13%, as does the long-term unemployed at 2.3%. And despite the soaring S&P 500, wages haven’t really budged in y ... Read More



How to Profit from the Weakening Housing Market



Housing MarketIt doesn’t take much to get the bulls excited when it comes to the U.S. housing market. Solid new-home sales data seems to have erased everyone’s memory of the raft of negative housing market numbers that have been flowing in for months. But first, the good news! The U.S. Department of Commerce announced Wednesday that sales of new U.S. single-family homes soared 9.6% month-over-month in January to a seasonally adjusted annual rate of 468,000, the highest level since July 2008. January’s numbers are also 2.2% ahead of January 2013 estimates of 458,000. (Source: “New Residential Sales in January 2014,” United ... Read More