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

Welcome to Profit Confidential • Monday, May 21, 2012

Bright Future Predicted Ahead for Stocks

Monday, May 14th, 2007
By Mitchell Clark, B.Comm. for Profit Confidential

The broader market’s pulled back somewhat after a solid run. Many market participants like for the stock market to take regular breaks because they don’t want investor enthusiasm to create a bubble.

A lot of individual investors I speak with are still not participating in the stock market like they used to. Many are gun-shy after the technology meltdown. A lot of people still own stocks, but only through mutual and pension funds. This is kind of a shame because over the last 18 months, there have been some truly spectacular investment opportunities in the equity market. Consider all the great China stocks we’ve been talking about.

With the main stock market indices still on an upward trend and only mediocre participation by individual investors in this market, I’m beginning to think that we’re going to see a strong rally later this year.

As I’ve written in this column before, a lot of statistical research shows that the third year in a presidential term is often very strong for equities. So, if we consider the statistical data, add in solid corporate earnings, and the potential for a quarter-point interest rate reduction towards the end of the year, we could get a strong performance from stocks. This would be particularly impressive considering a lot of Street analysts (including me) thought that this year was going to be a lackluster market for stocks due to the slowing economy.

I’ve got to keep reminding myself that the stock market exists to speculate about the future. It doesn’t seem to focus as much on the present. In a sense, today’s news is history. The stock market already knows that the economy and the real estate markets are slowing, so now it’s focusing on the future. What the stock market is telling me right now is that it thinks that future is going to be pretty bright.

Next Post:
Previous Post:

Tags: , ,










Sign Up for PROFIT CONFIDENTIAL and
receive a FREE copy of our exclusive report:
"A GOLDEN OPPORTUNITY FOR STOCK MARKET INVESTORS"

Enter e-mail:

We respect your privacy and
will never share your e-mail address.



Profit Confidential AuthorMitchell is a Senior Editor at Lombardi Financial specializing in small-cap stocks. He’s the editor of a variety of popular Lombardi Financial newsletters, such as Penny Stock Reporter, Micro-Cap Stocks, and Monster Profits. Mitchell, who has been with Lombardi Financial for thirteen years, won the Jack Madden Prize in economic history and is a long-time student of equity markets. Prior to joining Lombardi, Mitchell was as a stock broker for a large investment bank. While Mitchell is not working he enjoys fly fishing, motorcycling and tending to his hobby farm.

Daily Profits


Enter your e-mail address to subscribe to
Profit Confidential — IT'S FREE!
Enter e-mail:
ALSO RECEIVE A FREE COPY of our exclusive report:
"A Golden Opportunity for Stock Market Investors"

McAfee SECURE sites help keep you safe from identity theft, credit card fraud, spyware, spam, viruses and online scams

 

Corporate
About Us
Privacy
Disclaimer
Contact Us
White List
Sitemap

Profit Confidential
Predictions
Gurus
Archives
FREE Sign-Up
RSS
Twitter
Facebook

Editors
Michael Lombardi
George Leong
Mitchell Clark
Tony Jasansky
Robert Appel
Wendy Potter
Sasha Cekerevac

Topics
Gold Stocks
Stock Market
Bear Market
Bull Market
US Dollar
Euro
Interest Rates

Expertise
U.S.Deficit
Real Estate Market
Debt Crisis
Chinese Economy
Economic Analysis

Guidance
Investment Guidance
Retirement Plan
Chinese Stocks
The Best Stocks
Gold Stock Picking
Real Estate Investment

Resources
Gold
Precious Metals
Real Estate News
Gold Investments
Investing in Real Estate


Profit Confidential Disclaimer