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.


Here’s Why Netflix, Inc. (NASDAQ:NFLX) Stock Could Soar Another 50%

By Wednesday, September 2, 2015
Netflix Stock RallyToday is a big day for Netflix, Inc. (NASDAQ:NFLX). The company just launched its on-demand video streaming service for Japan, marking its first foray into Asia. The streaming video service has been growing rapidly in its existing international markets. In the second quarter of 2015, the company added a total of 3.3 million new subscribers..

Phillips 66 (NYSE:PSX): Here’s Why Warren Buffett is Buying This Oil Stock

By Wednesday, September 2, 2015
Dropping-Oil-PricesWarren Buffett is banking on a positive oil price forecast to lend some relief from a bad year in auto insurance investments. A recent $4.5 billion dollar purchase by Buffett’s Berkshire Hathaway Inc. (NYSE:BRK.A) of a large stake in oil major Phillips 66 (NYSE:PSX) suggests that the legendary billionaire investor sees an oil price.

Chart: Here’s Why China’s Stock Market Could Crash Another 50%

By Wednesday, September 2, 2015
China Stock Market CrashOver the next couple of months, China’s stock market could crash another 50%. It won’t happen overnight. But as I’m about to show you, the bull market in Chinese equities is over. And before the crash is over, investors could lose 20%, 35%, 50%, or even more. Let me explain. As the great Yogi Berra once said, “If people don’t want.

Billionaire Steve Cohen Bought Millions of Shares of SunEdison, Inc. (NYSE:SUNE), Should You Follow?

By Wednesday, September 2, 2015
SunEdisonBillionaire investor Steve Cohen just bought millions of shares of SunEdison, Inc. (NYSE:SUNE). Should you follow? First, let’s pause for a second and take a look at what’s happening right now: the U.S. stock market is plunging. At around 3:00 p.m. E.T. on Tuesday September 1st, the Dow is down 2.40%; the NASDAQ is down 2.33%; and .

(Video) Jim Grant Says Federal Reserve Has Turned Stock Market Into a “Hall of Mirrors”

By Wednesday, September 2, 2015
Interest-RateThe Federal Reserve has created an enormous stock market bubble which threatens to set off a global economic collapse in 2016. Or at least, that’s the opinion of famed market commentator Jim Grant. Last week, the publisher of Grant’s Interest Rate Observer sat down with Reason magazine to discuss the financial world’s recent .
Sep. 3, 2015
Trailing 12-month EPS for Dow Jones companies (Most Recent Quarter) $1014.15
Trailing 12-month Price/earnings multiple (Most Recent Quarter)

17.44

Dow Jones Industrial Average Dividend Yield 2.62%
10-year U.S. Treasury Yield 2.19%

Immediate term outlook:
The bear market rally in stocks that started in March 2009, extended because of unprecedented central bank money printing, is coming to an end. Gold bullion is up $1,000 an ounce since we first recommended it in 2002 and we are still bullish on the physical metal.

Short-to-medium term outlook:
World economies are entering their slowest growth period since 2009. The Chinese economy grew last year at its slowest pace in 24 years. Japan is in recession. The eurozone is in depression. With almost half the S&P 500 companies deriving revenue outside the U.S., slower world economic growth will negatively impact revenue and earnings growth of American companies. Domestically, America’s gross domestic product grew by only a meager 2.3% in the second quarter, which will negatively impact an already overpriced equity market.

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From: Michael Lombardi, MBA
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