By Michael Lombardi, MBA | October 22, 2013
Optimism towards key stock indices is increasing each day. The U.S. stock market “seems” to be a safe place, and it’s common to hear stock advisors suggesting we are going higher on key stock indices.
Key stock indices like the S&P 500 are making fresh highs. Google Inc. (NASDAQ/GOOG) has surged above the $1,000-per-share mark. Just take a look at the chart below.
Recently, we heard the “Godfather of Charts,” … Read More
By Michael Lombardi, MBA | September 17, 2012
House prices have gone up! Does this mean a recovery in the housing market is in? Don’t jump in quite yet, dear reader.
The collapse of the housing market that started in 2006 has taken its toll on the U.S economy. Nationally, U.S. home prices are still down 31% from where they were in 2006. Home prices will need to go up almost 45% for home prices to get back … Read More
By Michael Lombardi, MBA | September 6, 2012
The grim reality is that the U.S. economy will not be improving anytime soon. The statistics don’t lie—there is no economic growth, but there is growing evidence the U.S. is experiencing an economic slowdown.
One important indicator of economic growth includes the standard of living. As I have written recently, the American middle class is in jeopardy of disappearing, just like it has in most of Europe.
In June of … Read More
By Michael Lombardi, MBA | August 29, 2012
There is calm before the storm looming in the U.S. that is called the “Fiscal Cliff”—a bigger issue than perceived by the majority of the American population.
A fiscal policy implemented during President Bush’s period in office, which included cuts in taxes and increased government spending, is set to expire at the of this year. That means higher taxes, cuts in government spending, and a reduced budget deficit.
On the … Read More
By Michael Lombardi, MBA | August 20, 2012
In spite of weak corporate earnings within the S&P 500 list companies, the market continues to grind its way higher. However, this chart shows the S&P 500 could be forming what is referred to in technical analysis jargon as a “Triple Top Reversal Pattern.”
The below is a three-year chart of the S&P 500. Those blue circles to the right of the chart represent the rough equivalent high price points … Read More
By Michael Lombardi, MBA | August 13, 2012
The U.S. Midwest is in the midst of the most severe drought in 50 years. The brutal conditions are destroying corn, wheat, and soybean crops, sending the prices of many agricultural commodities rocketing higher—another knife cutting into consumer confidence and consumer spending.
Since June 1, corn prices are up 44% and soybean prices are up 26%. (Source: Wall Street Journal, July 25, 2012). Corn, soybeans and wheat go into … Read More
By Michael Lombardi, MBA | July 25, 2012
As I have been warning in these pages, corporate revenue growth within the global economic slowdown is going to be very hard to come by for the remainder of 2012.
So far, about 25% of all S&P 500 companies have reported their corporate earnings for the second quarter. Sales have risen among these firms at the slowest rate since 2009. (Source: Financial Times, July 22, 2012.)
This has forced … Read More
By Michael Lombardi, MBA | July 19, 2012
When the governor of Utah signed a bill that made gold bullion and silver bullion legal tender in the state last March, he had no idea of the groundswell he was going to start.
The Utah Sound Money Act outright flies in the face of the fiat money system, which is the printed money used today; backed by nothing but the promises of politicians. While U.S. states cannot create their … Read More
By Michael Lombardi, MBA | July 13, 2012
San Bernardino, with a population of 209,000, has become the third California municipality to declare bankruptcy within the last few weeks.
The budget deficit that San Bernardino faced was $46.0 million and its money was gone, leaving the council little choice but to declare bankruptcy, especially in an economy that feels like a recession. The reason for the bankruptcy vote was that when the city council looked at its projected … Read More