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

Archive for the ‘stocks’ Category

September 2011 Technical
Outlook for Stocks

By for Profit Confidential

Lack of hopeful economic data has made it difficult for the deeply oversold stock market to find a trigger for a meaningful and sustainable rebound. The Federal Reserve’s annual symposium inJackson Hole,Wyoming, always a closely watched event, was of extra interest to the financial markets this year. But Fed Chief Ben Bernanke’s vague speech on Friday revealed nothing that was not already heard in recent weeks.

Precious Metals Winners—Three
Excellent Wealth-creating Stocks

By for Profit Confidential

One of the best things you can do as a serious equity investor is to review big stock market winners, even if you didn’t own them. It’s the same thing that professional athletes do. A golfer will review past golf tournaments. A race car driver will watch old races. The goal of the process is to improve your own game by seeing what has worked the best in the past. In the case of stocks, reviewing past winners helps an investor to hone his or her stock picking skills by helping him/her become familiar with what a big winner looks like and discover how it all came to be. It takes time and it takes effort, but then again, money doesn’t grow on trees.

First Stocks, Then Real Estate—What’s
the Winner Going to Be This Decade?

By for Profit Confidential

I think it’s probable that the stock market will continue to convulse for the rest of the third quarter and into the fourth. The trend in economic news is down and so is investor sentiment. We still have a lot of problems with sovereign debt issues in Europe and this is an investment risk that isn’t going away anytime soon.

Patience is the Name of the Game

By for Profit Confidential

Right now the stock market is in a fragile state. It just doesn’t know where it wants to go. The good news is that the price of oil and gasoline is falling so consumers will feel better about filling up at the pump.

My best guess so far is that the broad stock market indices can rally later in the fourth quarter. This is the traditional strong period for stocks. Over the very near-term, however, I’m really cautious.

September and October can be terrible months for stocks. In a sense, all pertinent information comes forth in these months conspiring to create the “sum of all fears” for investors. Literally, anything can happen to the stock market during these months.

As I’ve mentioned before, the stock market needs more certainty regarding the inflation situation. If it can get it, then stocks can rally into 2007. If not, we’re left with the current lackluster environment of range bound, directionless trading.

This doesn’t mean there aren’t great investment opportunities out there, only that the price action for most stocks isn’t as likely to be as robust. If it was my money, I’d be sitting on the sidelines right now waiting for some clear direction or catalyst to get the market averages moving.

In the absence of an upward trend, I’d keep my winners and cull my losers. With lousy stock market conditions comes opportunity to get into positions at attractive prices. So, I’d sit on my money in this environment, keep a keen eye on some attractive new prospects, and wait and watch until there’s some really good news to get things going…. Read More

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