Lombardi: Expert Stock Market Commentary & Forecasts, Financial & Economic Analysis Since 1986
Stock Market Commentary & Forecasts, Financial & Economic Analysis

Welcome to Profit Confidential • Thursday, May 17, 2012

Archive for December, 2004


Stock picker delivers 100% gains 32 times

Over the past 24 months, 32 stocks I have recommended have gained more than 100%!

Here are just a few examples of my actual annualized returns:

701% PROFIT from Golden Star Resources 388% PROFIT from Wheaton River Minerals 1,059% PROFIT from Prosoft Training 391% PROFIT from Bema Gold 931% PROFIT from Beacon Power 1,399% PROFIT from LCC International

Now I want to use my unique stock-picking system to help you…

Dear Profit Confidential Reader:

I want to send you my special weekly e-mail bulletin. In it I’ll spell out for you which stocks to buy and sell to make profits of at least $5,000.

I’m betting that I’ll make you so much money that you’ll start to anxiously await my e-mail every week. But I want you to decide that for yourself!

My average gain for the past two years has been 226% per trade. And here’s how I do it:

First, I focus only on heavily traded stocks that move fast. We want quick, big percentage profits in days. Not months or years.

Second, I analyze each stock with my unique system. It took me 10 years to develop my 13-Factor System. It searches the market for stocks that will move higher according to sophisticated patterns.

My system determines the optimum prices at which to buy… and targets prices at which to sell for maximum profits. I will tell you exactly what stocks to buy and sell-and when.


What Is Our Money Really Worth?

About 90 years ago, the U.S. Federal Reserve was created. And not so many years ago, the idea of officially backing paper money by gold bullion reserves sitting in central banks was abolished.

So today, we have a central bank, the Federal Reserve, that can literally create money out of thin air when it wants to. Have you ever wondered how the Fed creates money? It simply prints it. No hard work, nothing mined out of the ground, not the hard work of miners, just a few printing presses.

I’ve seen some financial reports that claim the U.S. dollar has lost about 90% of its purchasing power since the Federal Reserve was created almost a century ago. The economic “old timers” will often ask the question: Is paper money really worth anything anymore?

Where am I going with all this?

In the very, very long term, history has demonstrated that all paper currencies eventually end up worthless. Will that happen to the American dollar? Probably not in our lifetime, but eventually I believe it will.

I’ve written about this many times, but I just want to place it in perspective for my readers at this particular point in time.

The tech bubble in the stock market blew up very early in 2000. Since then, the NASDAQ and the Dow Jones Industrial Average (five years later) have failed to surpass their previous index highs. Remember, stocks are a leading indicator.

The debt of the United States federal government, the debt of all state governments, and the debt of American consumers are at an all-time high.

And accommodative interest rates, despite having fallen to a 46- year low, have not been enough to spur the economy. Labor is simply cheaper abroad, providing American consumers with a greater appetite for imports, which has caused problems for American manufacturers.

In the wake of all these negative economic factors, gold bullion prices are now at a 16-year high. Considering the poor economic points I discussed above, I really believe the smart money has been moving into gold bullion and gold shares, and that’s why the metal is really shining these days. If you haven’t looked at diversifying your paper investments with some exposure to gold, you may want to seriously consider doing so at this juncture in our economic history.


What I Think About Home Prices

Today, the Federal Reserve will raise interest rates again, bringing the Federal Funds rate to 2.25%, up significantly (125%) from the beginning of 2004.

While most market watchers, especially real estate analysts, want us to believe that higher interest rates will not have a negative effect on the housing market, we only need to look across the Atlantic Ocean to see what happens when interest rates rise.

Like the Fed, the Bank of England has been raising interest rates too. While the Fed will raise rates again today for the fifth consecutive time here in the U.S., the Bank of England has raised interest rates six consecutive times. Hence, the Federal Reserve is only one rate hike behind the Bank of England.

What I find most interesting is that the housing market in the United Kingdom did not start to react to higher interest rates until between the fifth and sixth rate hike. Here’s what I’m talking about:

– Asking prices for homes in the U.K. fell 1.7% in October. In August they had dropped 2%.

– There were 40% more homes listed in the U.K. in October 2004 compared to January 2004.

– The annual rate of increases in asking prices for homes in the U.K. has now fallen three consecutive months in a row.

– It’s taking 40% more time to sell a home in the U.K. now as compared to the spring.

– Some regions that experienced strong price appreciation are now experiencing the biggest declines in asking prices. In Wales, asking prices for homes are down 9% from only July 2004.

I’m sure many real estate analysts will tell you these events can’t happen here. But I ask why not? For those who think property prices only go up, please check history and you’ll find many time periods when home prices went down.

The inventory of homes in America is much greater than in the U.K., so it’s not just a supply situation. And while the Dow Jones Industrial Average had been rallying of late, U.S. new- home builder stocks have not. Finally, history has proven there is a direct correlation between interest rates and home prices. Personally, I’m bearish on property prices for 2005.


Falling Dollar to Trigger Biggest Boom in Gold Stocks in 20 Years

How to Earn $10 for $1 Profits as the Shockwave Blindsides Most Investors

— Why the falling dollar will soon push up interest rates, reverse stock market gains and crucify unwitting investors.

— How the dollar’s decline has already boosted key gold stocks 200% over the past 12 months.

— Why a handful of investors will earn $10 for $1 profits as most investors falter.

— PLUS what you must do now to protect yourself and profit from the new gold boom that’s headed your way.

Dear Profit Confidential Reader,

An economic train wreck is barreling down on you and there’s no escaping it. A new monetary crisis is unfolding, greater than any the United States has faced in the past 74 years. And the impact is about to affect everything you own.

Here’s why:

Despite 13 consecutive interest rate cuts, Federal Reserve Chairman Alan Greenspan has blundered badly. A housing bubble has been created. The national debt is spiraling out of control. Now Greenspan is about to raise rates for the fifth time this year! Does he know what he’s doing? Well, the fallout is about to result in the unthinkable:

The collapse of the U.S. Dollar. Most investors have no clue about how a crippled and weak dollar will not only rock the world financial markets…

But also trigger a collapse on Wall Street that will make the 2000-2003 debacle look like a drop in the bucket.

Hard to believe? You bet. However, behind the rosy picture Greenspan’s been painting over the past 12 months, the dollar’s decline has been strong. And it’s about to crush the hopes and dreams of unwitting investors who fail to understand the situation that’s now unfolding.

But once you see through Greenspan’s big lie and take the simple actions I’ll spell out in the following special report, you’ll make serious, extreme profits as the dollar spirals south. Some investors have already gotten rich from the dollar’s decline. What will happen to your money when the strongest currency on earth goes bust?

I urge you to click below to see my special report, “Falling Dollar to Trigger Biggest Boom in Gold Stocks in 20 Years.” Go to this link now:

http://www.lombardipublishing.com/ads/ems/


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