Stock Market

U.S. Stock Market in 2015

Lombardi Publishing Corporation was established in 1986 as an investment newsletter providing stock market analysis to its readers. Today, we publish 26 paid-for investment letters, most of which provide stock market direction and individual stock picking analysis.

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

Michael Lombardi has been widely recognized as predicting five major economic events over the past 10 years.

1)      In 2002, he famously told readers to get into gold

2)      Told them to get out of the housing market in 2006

3)      Predicted the recession of late 2007

4)      Warned readers to get out of stocks in the fall of 2007

5)      Advised readers to get back into stocks in March 2009

In 2002, Michael’s Profit Confidential famously advised readers to buy gold-related investments when gold bullion traded under $300.00 an ounce. “I’ve been pushing gold bullion and gold shares for over a year now. Back in January 2002, I personally started buying gold shares.” (As published in Profit Confidential, December 13, 2002.)

In 2006, Profit Confidential “begged” its readers to get out of the housing market years before it plunged. Michael started warnings abut the coming U.S. housing crisis right at the peak of the boom. On August 2, 2006 Michael Lombardi predicted, “I’m getting very worried about the state of the U.S. housing market and its ramifications on the economy. The U.S. could be headed for its first annual decline in home prices on record, adjusted for inflation. And, I really believe this could be a catastrophe for the U.S. economy.”

Michael was also one of the first to predict the U.S. economy would be in a recession by late 2007. On March 22, 2007, he warned, “Over the past few weeks, I’ve written about subprime lenders and how their demise will hurt the U.S. housing market, the economy, and the stock market. There’s no escaping the carnage headed our way because the housing market and subprime business are falling apart. The worst of our problems, because of the easy money made available to borrowers, which fuelled the housing boom that peaked in 2005, has yet to arrive.”

At the same time Michael wrote this, former Federal Reserve Chairman Alan Greenspan was quoted as saying, “The worst is over for the U.S. housing market, and there will be no economic spillover effects from the poor housing market.”

Michael Lombardi also warned his readers in advance of the crash in the stock market of 2008. On November 29, 2007, Michael Lombardi predicted, “The Dow Jones Industrial Average, the S&P 500, and the other major stock market indices finished yesterday with the best two-day showing since 2002. I’m looking at the market really of the past two days as a classic stock market bear trap. As the economy gets closer to contraction, 2008 will likely be a most challenging economic year for America.”

The Dow Jones peaked at 14,279 in October, 2007. A “sucker’s rally” developed in November 2007, which Michael quickly classified as a bear trap for his readers. One year later, the Dow Jones Industrial Average was at 8,726.

And, Profit Confidential turned bullish on stocks in March of 2009, and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009.

Central Banks Creating Global Stock Market Bubbles

By Friday, April 17, 2015

Central banksIrrationality prevails in global stock markets and I believe it’s because of the actions of central banks. What’s happening with central banks and their involvement with equity markets not only is unprecedented, but it also will not end well.
Japanese Stock Market Topping 20,000
Just look at the chart below of the Tokyo Nikkei A… Read More

Early Corporate Earnings Unveil Missing Sales Growth

By Friday, April 17, 2015

Early corporate earningsAs corporate earnings tumble in, equity market action has been more tuned to stronger oil prices. A number of companies have now reported, and the numbers aren’t that bad. It’s still in the early stages, of course, but so far, there have been a lot of good financials. Having said that, sales growth has been missing early this corpor… Read More

Top Stocks Trading Under $5 to Watch This Month

By Thursday, April 16, 2015

Top stocks in aprilWith the long-in-the-tooth bull market rolling along, it’s getting harder for investors to find undervalued stocks with great upside potential. Or rather, it’s more difficult because investors continue to look in the same place over and over again. Some of the more interesting stocks out there are trading for cheap, includin… Read More

First-Quarter Corporate Earnings to Decline 4.6%; Biggest Drop Since 2009

By Wednesday, April 15, 2015

Coporate earnings biggest dropWith the first quarter of 2015 behind us, it’s corporate earnings reporting season. Unfortunately, we are expecting the biggest decline in public corporate earnings since 2009.
Corporate Earnings Expected to Decline
Corporate profits are the most basic reasons why key stock indices rise or fall. If earnings are rising, stocks… Read More

Why Investor Sentiment Is Ignoring Stock Results This Earnings Season

By Wednesday, April 15, 2015

Stock resultsThe stock market continues to be mediocre. Economic data from abroad isn’t particularly inspiring. Investors are likely to yawn at first-quarter earnings season results this year as they did with earnings for the fourth quarter of 2014.
If there is an overarching theme to the stock market’s action this year, it’s that the Fed… Read More

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