Economic Analysis

The rise of the Internet has created an abundance of easily accessible economic information. Unfortunately, this has made it difficult for investors to understand, digest, and even evaluate. Where, then, can investors turn for objective economic analysis, market research, and breaking fiscal news that affects both Wall Street and Main Street?

Economic analysis means looking at the interconnected effects of global economic events. These events can be as major as geopolitical tensions, elections, corporate earnings, housing markets, consumer sentiment, and rising unemployment rates—to seemingly innocuous news stories, including mergers and acquisitions, crude oil inventories, auto loans, birth rates, and retiring Baby Boomers.

In 2001, Michael Lombardi started his famous daily economic newsletter Profit Confidential. Written by Lombardi Financial editors who have been offering stock market guidance to Lombardi customers for years, Profit Confidential provides a macro-picture on where the stock market is headed, what sectors are hot, and what sectors to avoid.

Over the years, Michael’s financial commentary and the accuracy of his economic predictions have garnered him global attention and the confidence of over one million investors in more than 140 countries.

When the U.S. economy was on the verge of collapse after the financial crisis of 2008, the Federal Reserve came to the rescue. The central bank provided the financial system with quantitative easing (QE)—it printed money and bought bad debt from the big banks. As a result, the Federal Reserve’s balance sheet has grown by almost $2.0 trillion—200% in less than five years. Where did the money come from, and how does it affect the buying power of the average American?

The eurozone is struggling to get out of a debt crisis that has been helping weigh down the global economy. Germany and France, the go-to countries for economic growth and stability in the eurozone, are beginning to experience retractions and may not be able to prevent the region from slipping into a recession. The eurozone unemployment rate reached a record high of 11.7% in October 2012, up from 11.6% in September. There are 18.7 million people unemployed in the region, with Spain and Greece’s unemployment rates both exceeding 25%. (Source: Eurostat, November 30, 2012.)

What does this mean for the eurozone? How will it impact the United States? Or, affect the Chinese economy?

At the same time, it’s important that economic analysis takes an ongoing look at domestic policies. For example, cities like Vallejo, Mammoth Lakes, Stockton, and San Bernardino have already defaulted on their municipal bonds. What caused them to declare bankruptcy, and how does it affect the everyday investor and the overall health of the U.S. economy?

The global economy is constantly going through changes. We currently live in a world where one country is connected with the other. It doesn’t really matter anymore how far or close economies are to each other.

That’s why in-depth macro- and micro-economic analysis is more important than ever. It helps investors see the world from different perspectives and helps uncover opportunities to balance, diversify, and grow stock portfolios.

China’s economic situation, the information age, an end to the 30-year down cycle in interest rates, the credit crisis , the coming debt crisis in America, the eurozone crisis—these are only a few of the economic events occurring in the global economy. That’s what drives Profit Confidential. We take the economic information churned out daily, analyze it, and deliver understandable, even fun-to-read, economic analysis to our readers each day.

National Debt Balloon Bearish for U.S. Dollar, Positive for Metals

By Friday, March 27, 2015

National Debt  turning into Debt crisisWith the U.S. government forecast to incur budget deficits year-over-year through to 2025, our rising national debt is turning into a debt crisis that will have long-term negative effects on our economy and currency valuation. In particular, two ticking debt time bombs are lurking nearby.
Official National Debt Figures to 2025
Ac… Read More

Economic Collapse Headed for U.S. in 2015

By Thursday, March 26, 2015

U.S. Economic Collapse 2015The last thing Wall Street is thinking about is an economic collapse in 2015… Read More. After all, the stock markets are at record highs, unemployment is down, and inflation is in check. But the fact of the matter is that these same indicators were also in check before the markets crashed in 1987, 2000, and 2008/09.
Back in 2008/09, everyone on Wal

The “Grexit” Explained: What’s Behind Greece’s Possible Eurozone Exit

By Thursday, March 26, 2015

Greece Stock MarketWhat to Know About Greece’s Potential Eurozone Exit (or “Grexit”)
Is anything more gripping right now than wondering how close Germany will let Greece get to the precipice before a crisis is averted at the last second?
Greece’s six-year recession came to a quiet end at the start of 2014. Since then, its recovery has been anemi… Read More

Canadian Dollar Forecast 2015: Worse Times Ahead for Canadian Economy?

By Friday, March 20, 2015

Canadian dollar forecastLet’s get right to it: the Canadian dollar faces serious headwinds—largely due to lower oil prices and a weakening economy. My forecast for the Canadian dollar in 2015 calls for continued weakness and potential for further downside.
Canadian Dollar Outlook 2015: The Technical Take
How times have changed. During April 2011, th… Read More

U.S. Economy to Enter Recession by 2016?

By Friday, March 13, 2015

US Economy recession 2016Don’t buy into the false optimism. While the mainstream media and economists are convinced there’s prosperity, I am concerned the U.S. economy will enter a recession in late 2015 or early 2016.
The simple fact is that consumer spending is the biggest factor driving the U.S. economy, and it is presently experiencing its own reces… Read More

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