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.
Is Netflix about to hit $250? Will Donald Trump win the GOP nomination? Could this lead to a U.S. economic collapse in 2015?It was a busy week here at Profit Confidential. Settle into to your favorite easy chair, pour yourself some cool iced tea, and enjoy these top weekend reads.Is Netflix About to Hit $250?“The number of subscribers. Read More
As of July 24, 187 companies in the S&P 500 have reported their corporate earnings. For these 187 companies, their average decline in earnings has been 2.2%. If this is the final number, then it will be the biggest decline in quarterly earnings for the S&P 500 since 2009. (Source: FactSet, July 24, 2015.)But it may get worse. Only. Read More
In any market, there are companies outperforming the herd. Below, we’ll take a look at three examples of top micro-cap stocks that are highly likely to grow their businesses at a rate much faster than the general economy.Because the stock market has already gone up in expectation of better business conditions, we’re getting sideways. Read More
The Chinese stock market is extremely vulnerable to additional episodes of selling. In the process, this could lead to a Chinese economic collapse in 2015 or 2016.A few weeks ago, I discussed the real threat and contagious impact of a bigger correction in the Shanghai Composite Index (SSE), which had been down 32% but has since rallied. Read More
Facebook Inc. (NASDAQ/FB) shares tumbled four percent on Thursday morning. Why? The company just released its second-quarter earnings. (Source: Facebook Inc., July 29, 2015.)In the second quarter of 2015, Facebook’s revenue increased 38.9% year-over-year to $4.04 billion. Excluding exchange rate fluctuations, revenue would. Read More