Ahead of the Street

Great Companies, Great Stocks—Market
Leaders That Are Worth Your While

By Monday, January 17, 2011
Long-time readers know of my affinity for following a number of large-cap, benchmark stocks for the purposes of honing my own stock market view. Every quarter, I always write the same thing—that earnings season is the absolute best time to be researching the stock market and new investment opportunities.

Great Stocks That Are Going up—the Momentum Continues

By Friday, January 14, 2011
The problem with mining stocks now is that most of the good ones have already gone up in price. This makes buying low and trying to sell high a lot more difficult. In fact the action now is really about buying high and trying to sell higher—just like Internet stocks a few years back.

Mining’s Making Money as One of the
Most Profitable Industries Out There

By Thursday, January 13, 2011
I continue to see a lot of good news hitting the wires and I hope this momentum lasts. We’re getting positive results from big companies and small companies and across a range of industries. This is a strong signal that the economic recovery might be stronger than economists currently estimate.

Thanks for the Numbers…Now What?

By Wednesday, January 12, 2011
All kinds of companies are reporting good news now, but it may not be enough for the stock market to keep appreciating. A new earnings season is just beginning, but these seasons come and go awfully fast. What this stock market needs is a new catalyst. Without one, I think the main averages will drift lower.

The Interesting New Companies
Hitting the Marketplace

By Monday, January 10, 2011
With the exception of mining stocks that move commensurately with the underlying spot prices of precious metals, the trading action in a lot of growth companies has been robust. Even recent initial public offerings (IPOs), which usually come to market expensively priced, are doing well in an environment where investors have no other choice but to be buyers of stocks.

Buy on Rumor, Sell on News—Don’t Be Fazed by a Market Selloff

By Friday, January 7, 2011
Most of the news out there is getting better, but the stock market’s been taking a bit of a rest and that’s good. We’ve also seen a real pullback in commodity prices and this is well deserved. I don’t like it when markets go up indefinitely without corrections. It’s not healthy and bubbles almost always end badly.

Will Commodities Please Experience
a Major Correction?

By Thursday, January 6, 2011
A lot of initial public offerings (IPOs) have hit the market recently, and that’s no surprise—the stock market’s been strong. Times have been tough in the investment banking industry, but this changed recently with the much improved sentiment in the broader market. We can never forget that everything in the investment business is about perception.

Unanimity on the Economy & Stocks,
Just Not on Inflation & Interest Rates

By Wednesday, January 5, 2011
The current momentum in stocks is well deserved. There’s no other place for large investors to invest their money and expect to get a return on investment greater than the rate of inflation. There’s also earnings momentum and that’s going to carry share prices further, at least over the very near term.

Guess What’s Going up in Price?
Almost Everything

By Thursday, December 23, 2010
If you want to know what’s happening in the inflation department, all you have to do is go down to your local baker and he or she will tell you that the price of raw ingredients is getting a lot more expensive. There is price inflation out there and it’s slowly building in the global marketplace. It started with food commodities like sugar, cotton and coffee, and it’s increasingly likely that it will spread to other agricultural commodities throughout 2011. In fact, it’s already happening.

Long, on the Fence, and Totally Unsure—My Outlook for Stocks

By Wednesday, December 22, 2010
I actually think that large-cap companies will be the big story going into 2011, at least for the first half. While smaller companies traditionally do well coming out of recession, this time around, the big companies have the cost structure and pricing power to accelerate earnings at a rate much greater than revenue growth. This is good for the stock market and the economy—in the short term.
Sep. 1, 2015
Trailing 12-month EPS for Dow Jones companies (Most Recent Quarter) $1014.15
Trailing 12-month Price/earnings multiple (Most Recent Quarter)


Dow Jones Industrial Average Dividend Yield 2.71%
10-year U.S. Treasury Yield 2.14%

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.


Will slowdown in China affect the U.S. economy?

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From: Michael Lombardi, MBA
Subject: The $2 Silver Stock Every Investor Should Own!

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