Daily Gains Letter

economic analysis


Top Stocks to Watch for Steady Dividends and Capital Gains

By for Daily Gains Letter | Feb 9, 2015

Top StocksThe stock market may be blooming again with the major key stock indices rallying back above their 50-day moving average (MA), but there is still ample downside vulnerability.

We have the mess in the eurozone with Greece threatening to leave the euro and not honor its massive debt obligations. There’s also the China risk. Then there are the oil prices. Oil rallied to $53.00 last week, prior to retrenching and then rallying again. It’s going to be nerve-racking.

The problem investors continue to face is the lack of alternatives to the stock market. The 10-year bond yields 1.82%, which is not great unless you have tons of cash. Of course, you could buy distressed high-yielding Greek or Russian debt, but why would you, given the default risk?

So that leaves us with stocks.

Stocks to Watch While Bonds and Global Economy Stagnate

For those of you looking for and requiring dividends, it’s not easy at this time. There are the big banks and higher-risk regional banks to consider. For this reason, I would be sticking with the more stable dividend-paying stocks that not only pay dividends, but also offer the opportunity for capital gains.

The most obvious target for dividends is the blue-chip area. These are great companies with proven long-term sustainability for investors seeking dividends and growth. We are talking about world-class multinational companies, such as The Boeing Company (NYSE/BA), General Electric Company (NYSE/GE), Johnson & Johnson (NYSE/JNJ), The Coca-Cola Company (NYSE/KO), McDonalds Corporation (NYSE/MCD), The Procter & Gamble Company (NYSE/PG), and Wal-Mart Stores Inc. (NYSE/WMT). For the most part, you cannot go wrong with blue-chip dividend stocks…. Read More

Aggressive


How Good News from Belarus Could Mean Gains for U.S. Investors

By for Daily Gains Letter | Aug 25, 2014

Profit from a Russia-Ukraine ResolutionIt began with the battle for Crimea, followed by the shooting down of Malaysian flight ML17 in eastern Ukraine, but for Russia, which was blamed for both, there has been a battle over the strength of its economy, triggered by a multitude of economic sanctions by Europe and the United States.

Russia, under President Vladimir Putin, has been in strong denial to all the blame it has received; but clearly, the world sees a different story, which is the reason for the economic sanctions. Now, these economic sanctions have begun to wreak havoc in the region, based on my economic analysis.

The reality is that Russia, based on my economic analysis, is not strong enough economically to survive on its own domestic consumption and ignore the global economy. Yes, Russia has its alliances with China, but it’s not enough, especially since the Chinese economy is also struggling to avoid a hard crash, as my economic analysis indicates.

Putin has had time to rethink his strategy and I’m sure he has had many phone calls from Russia’s business elite regarding the sanctions and their impact on their wallets. Heck, even Putin, who has major economic interests in Russia, is hurting at the bank.

Now there’s hope with a meeting between Putin and Ukrainian President Petro Poroshenko scheduled to take place in Belarus this week. Russian stocks have closed higher in 10 straight sessions as optimism rises and an end to the conflict could emerge following the meeting.

While the benchmark MICEX Index, which comprises the 50 most liquid Russian stocks that represent the Russian economy, is down 2.59% year-to-date as of … Read More