Economic growth

U.S. Economic Collapse: Low Income Americans Can’t Afford to Live in Any Metro Area

By Tuesday, September 1, 2015
Low-Income Workers Have Nowhere Affordable to LiveA new report shows poor households cannot earn enough to live in even the least expensive metropolitan American cities. This is a signal that the country’s slow-motion economic collapse is hitting low-income workers the hardest. Commentators continue to cheer on America’s so-called booming economic recovery. Last quarter, the U.S. economy grew at a surprisingly good 3.7% annualized rate. Stock market indices, including the S&P 500 and the Dow Jones Industrial .

Consumer Spending Anemic as 58% Say Economy “Getting Worse”

By Monday, August 31, 2015
Consumer SpendingI have written over and over again on how distorted the U.S. business sales and inventory figures are. Manufacturers are stockpiling products. Retailers are experiencing a decline in sales. Consumer spending is getting softer. But it’s more than just retail that is becoming a drag on the U.S. economy. Statistics from the U.S. housing market also point to very soft consumer spending. In July, the annual rate of new home .

Exchange Traded Funds: 2 ETFs to Profit from China’s Economic Growth

By Friday, August 28, 2015
Exchange Traded FundIn a country where the annual gross domestic product (GDP) growth rate could be eight percent, its stock market should be a good place to invest, right? Well, according to the portfolio strategy research team at The Goldman Sachs Group, Inc. (NYSE:GS), China’s economic growth will come back in the final quarter of this year. Moreover, the country’s growth rate is expected to accelerate to an annualized rate of eight .

U.S. Economy: Why Recession’s Knocking

By Friday, August 21, 2015
RecessionWhat used to be a leading indicator, the stock market has now become a lagging indicator. For months (in these pages), I have written about how sick the U.S. economy has become. Stock market investors are waking up to the reality that world economic growth is either non-existent or even contracting—albeit too late. The Dow Jones Industrial Average is now solidly in the red for 2015, down 832 points since .

What Is the U.S. Economic Outlook for 2015? Good, if You’re Rich

By Monday, August 10, 2015
The U.S. Economic Outlook for 2015 will be significantly different depending on your vantage point. If you’re wealthy, 2015 will probably be another year of celebratory wealth creation. If, on the other hand, you’re not, 2015 will feel an awful lot like 2014, 2013, 2012, 2011, 2010, and 2009. Wall Street and the U.S. government will tell you the economy is doing well, but it won’t feel like it. In .

Consumer Confidence Plunges in July as U.S. Economy Heads Wrong Way

By Monday, August 3, 2015
Consumer ConfidenceIn the month of July, the Conference Board’s Consumer Confidence Index declined nine percent from May. The index stood at 99.9 in June and plunged to 90.9 in July—the lowest level since September of 2014! A sub-index of this confidence index, called the Expectation Index, which measures how U.S. consumers feel they will do going forward, saw a massive decline to 79.9 in July from 92.8 in June—14% month-over-month. These .

What Economic Growth? One-Third of Americans Say They Are Now Poorer

By Wednesday, July 29, 2015
Economic growthAccording to a Gallup survey, 51% of Americans say that they are in the middle or upper-middle class. Between 2000 and 2008, an average of 61% of Americans identified themselves to be in middle and upper-middle class. (Source: Gallup, April 28, 2015.) In the survey, the percentage of Americans identifying themselves as working or lower class increased to 48% in 2015, compared to just 36% in mid-2008! On a relative .

U.S. Economy; More People on Food Stamps Now Than Entire Population of Spain

By Monday, July 6, 2015
U.S.EconomyAccording to a study by Economic Policy Institute, a nonpartisan think tank, between 2009 and 2014, the salaries of CEOs at the largest U.S. companies increased by 54.3%. (Source: Economic Policy Institute, June 22,2015.) But the average American hasn’t done that well. Between 2009 and 2013, median U.S. household income declined by four percent—from $54,059 to $51,939 in 2013. (Source: Federal Reserve Bank of St. Louis, last accessed June 25, .

New Numbers Suggest U.S. Economic Outlook Isn’t as Good as You Think

By Wednesday, July 1, 2015
U.S. Economic OutlookTraders received another piece of disappointing economic data, suggesting the U.S. economic outlook isn’t as rosy as many economists believe. On Tuesday, June 30th, the Institute for Supply Management (ISM) reported Midwest manufacturing activity declined last month. In May, the Chicago Purchasing Manager Index (PMI) climbed to 49.4 from 46.2 last month, the fourth straight month that the index has signaled a contraction. (Source: Institute for Supply Management, June 30, .

Economic Growth? Not According to These Statistics…

By Wednesday, April 29, 2015
Economic growthSince the credit crisis of 2008, the policies of the Federal Reserve have spurred immense financial inequality in the U.S. Those individuals (a very small minority) who were able to take advantage of the monetary policies of the Fed have done extremely well in expanding their wealth. But for the rest of America, there has been no economic growth. In fact, economic conditions are getting worse for the average American. .
Sep. 5, 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
Subject: Golden Opportunity for Stock Market Investors

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