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

Investment Advice

As an investor, it call comes down to this: Who do you trust to give you investment advice you can count on and profit from? Do you trust reporters and journalists that are telling you what happened yesterday? Do you trust stock brokers that make their money when you buy stocks they recommend? Investment advice today needs to unbiased and independent. You should only pay for the investment advice you use and you shouldn’t buy that advice from someone who makes money off your trades. That’s what Profit Confidentialis all about. Daily we reach hundreds of thousands of investors providing them unbiased investment advice from a stable of financial gurus with proven track records. Together, our editors have over one hundred years of investing experience…providing investment advice and analysis our readers have come to count on day after day.

This Large-cap Chinese ETF
Ideal for Long-term Investors

By for Profit Confidential

Chinese stocksThe Shanghai Composite Index (SCI) has been rallying and is up 9.3% this year as of Thursday, which is ahead of the Dow Jones Industrial and just below the S&P 500.

However, playing the Chinese capital markets involves excessive political and economic risk. The country is also stalling, but continues to grow well above other global regions, including Europe and the eurozone. My investment advice is that you need to build a well-diversified portfolio that would enable you to play Chinese growth stocks, especially small-cap stocks.

China is the second largest economy in the world and is continuing to roll along at a nice pace in spite of the country’s gross domestic product (GDP) slowing to 8.1% in the first quarter, down from 8.9% in the fourth quarter. The International Monetary Fund (IMF) estimates that the U.S. will grow its GDP by around 2.5% this year, compared to around 8.5% for China.

While the risk is high in trading Chinese stocks, especially of the small-cap variety and for smaller trading accounts given the selling of Chinese reverse merger stocks over the past year, you could also play China via some good exchange-traded funds (ETFs). If you are looking for some Chinese Internet plays, find out which stocks are the most interesting in Surfing China’s Internet for Profits.

In the ETF area, I like the PowerShares Golden Dragon Halter USX China ETF (AMEX/PGJ), which has strong small-cap components.

If you are looking for more of a blue-chip focus, take a look at the iShares FTSE/Xinhua China 25 Index (NYSE/FXI), which holds the top major companies in China. Holding this … Read More

Spending Remains an Issue;
My Advice on Retail Investing

By for Profit Confidential

The fact that consumer spending has not tanked in spite of unemployment being at over nine percent and expected to stay around this level through 2012, and continued weakness in housing is encouraging.

European Situation Likely to
Worsen: My Investment Advice

By for Profit Confidential

We have a likely debt default in Greece, pegged at a whopping 98%. Ireland and Portugal continue to struggle with muted growth and massive debt. Spain may be needing help. Bond yields are rapidly increasing in Europe in line with the risk levels. You can get a whopping 70% yield in Greek bonds, but then the bonds are likely to default. In comparison, the current yield on a U.S. 10-year bond is less than two percent. Germany and France are suffering due to their focus on the poorer nations. Germany is said to have no issues letting Greece default and then dealing with the debt crisis mess after.

Retail Stocks: Showing Some Improvement

By for Profit Confidential

I must admit the fact that consumers continue to spend despite any strong or sustained job growth and continued weakness in housing is encouraging. With consumer spending accounting for two-thirds of GDP, retail sales will eventually be stronger when the jobs and housing areas improve, albeit it will likely take over a year.

Investment Advice: Managing
Risk’s Key Given the Volatility

By for Profit Confidential

The overall stock market bias continues to be bearish. The selling capitulation remains in effect. Just take a look at what happened on Wednesday:
– DOW down over 500 points
– S&P 500 down over 100 points
– NASDAQ down over 50 points
The fact that we have yet to see a firm bottom makes the situation dangerous.

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The Great Crash of 2014

A stock market crash bigger than what happened in 2008 and early 2009 is headed our way.

In fact, we are predicting this crash will be even more devastating than the 1929 crash…

…the ramifications of which will hit the economy and Americans deeper than anything we’ve ever seen.

Our 27-year-old research firm feels so strongly about this, we’ve just produced a video to warn investors called, “The Great Crash of 2014.”

In case you are not familiar with our research work on the stock market:

In late 2001, in the aftermath of 9/11, we told our clients to buy small-cap stocks. They rose about 100% after we made that call.

We were one of the first major advisors to turn bullish on gold.

Throughout 2002, we urged our readers to buy gold stocks; many of which doubled and even tripled in price.

In November of 2007, we started begging our customers to get out of the stock market. Shortly afterwards, it was widely recognized that October 2007 was the top for stocks.

We correctly predicted the crash in the stock market of 2008 and early 2009.

And in March of 2009, we started telling our readers to jump into small caps. The Russell 2000 gained about 175% from when we made that call in 2009 to today.

Many investors will find our next prediction hard to believe until they see all the proof we have to back it up.

Even if you don’t own stocks, what’s about to happen will affect you!

I urge you to be among the first to get our next major prediction.
See it here now in this just-released alarming video.

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