By Michael Lombardi, MBA | February 4, 2013
(Make sure to read my important comments today about the stock market in “Where the Market Stands; Where it’s Headed” below.)
The U.S. economy, as measured by gross domestic product (GDP), contracted in the fourth quarter of 2012 for the first time in three and a half years. According to the Bureau of Economic Analysis, U.S. GDP “unexpectedly” declined 0.1% in the fourth quarter of 2012 from the third quarter. … Read More
By George Leong, B.Comm. | June 28, 2012
The key to China’s economic progress will be the rapid growth of the country’s middle class. In a research finding, Credit Suisse predicted that the household wealth in the country will double to $35.0 trillion by around 2015, based on achieving sustainable GDP growth at or near the current growth rate.
The economic analysis is simple; the extra renminbi mean more cash to spend on non-essential goods and services. This … Read More
By Michael Lombardi, MBA | March 23, 2012
As it stands, on January 1, 2013, tax benefits to consumers and businesses and government spending increases—which includes extended unemployment benefits—are set to expire.
These incentives that helped the economy “rebound” from the crisis add up to roughly $433 billion or approximately 2.9% of GDP (source: Bloomberg).
For the first quarter of 2012, Lombardi Financial believes that U.S. GDP growth is likely to come in well under two percent. For … Read More
By Michael Lombardi, MBA | February 13, 2012
Consumers just can’t stop spending…
U.S. consumer debt levels increased by $19.3 billion in December, after November’s steep rise of $20.0 billion, bringing total consumer credit in 2011 in the U.S. to $2.5 trillion (source: Federal Reserve).
Some economists are hailing this as a sign that economic growth is on the rebound, due to the consumer exhibiting confidence by taking on more debt.
Normally, in times of economic growth, income … Read More
By Michael Lombardi, MBA | February 6, 2012
Great news on the unemployment numbers last week? That was the message from many politicians and the popular media on Friday. But let’s take our usual closer look…
The Bureau of Labor Statistics reported on Friday that the U.S. created 243,000 jobs in January 2012, causing the unemployment rate to fall to a level not seen since February 2009: 8.3%.
The job numbers came in better than estimates; the best … Read More
By Michael Lombardi, MBA | October 13, 2011
Without getting too technical, investors have two ways to bet on the price direction of stocks. They can go “long” the market, which means they believe that stock prices will rise. Or they can go “short” the market, which means they are betting that stock prices will fall. Going “long” is easy; all investors need to do is buy stocks. And usually, when investors have a strong general consensus that the stock market will move higher, like they last did in October of 2007, stock prices go the opposite way and fall.
By George Leong, B.Comm. | September 28, 2011
Christmas is still three months away, but you know retailers are nervous about the ability of consumers to want to spend. How consumers spend will likely tell us how the economy will fare in 2012 and will help to drive the stock market. With consumer spending accounting for about 70% of the gross domestic product (GDP) growth in this country, it will be critical for consumers to spend.
When consumer … Read More
By George Leong, B.Comm. | September 19, 2011
The fact that consumer spending has not tanked in spite of unemployment being at over nine percent and expected to stay around this level through 2012, and continued weakness in housing is encouraging.
By Michael Lombardi, MBA | September 19, 2011
Gold prices rising for 10 years straight…the money supply greatly expanded…the printing press for dollars running overtime…am I the only one concerned about rapid inflation? I rarely read or hear a report talking about today’s rising prices or the hyperinflation we may sustain in the years ahead. We all know prices are rising—only housing prices have remained low. Inflation is real and it is here now.