Lombardi: Stock Market Commentary & Forecasts, Financial & Economic Analysis Since 1986

economic news

A Hot Sector of the Market I Feel Will Soon Be a Buy Again

By | June 26, 2014

Why Action in 3D-Printing Stocks Is Healthy for This MarketEverything in the stock market experiences its own cycle of enthusiasm among investors. And this is especially well illustrated among speculative issues.

There was a time only a few years ago when some of the hottest speculative stocks were in solar energy. Now this small equity universe is still trying to rebuild itself.

And in more recent history, 3D-printing companies experienced incredible capital gains, only to experience incredible capital losses … Read More

What Do This Quarter’s Mixed Earnings Results Mean?

By | June 23, 2014

Market May Be Entering a New Cycle—But Don't Buy Just Yet!Oracle Corporation (ORCL) announced a quarterly revenue gain of three percent, but Wall Street was looking for more and the company’s share price retreated on its earnings results.

If it weren’t for the Federal Reserve, we probably would be in a correction, if not a consolidation, which has been the broader market’s go-to trend when it should have retreated further.

It’s such a mixed bag out there both in terms … Read More

The Downside to Dow 20,0000

By | June 13, 2014

Where the Stock Market Could Head NextWith the Dow Jones hitting 17,000 being pretty likely in the not-too-distant future, from there, it’s only another 18% or so until the Dow hits 20,000, which is pretty incredible.

These numbers seemed so unrealistic just a few years ago but now, it’s not too farfetched. The most amazing thing to me is that stocks still haven’t experienced a material price correction since the financial crisis.

Stocks aren’t necessarily stretched … Read More

Why the Chinese Economic Slowdown Matters

By | March 11, 2014

Chinese Economy to See Black Swan Type EventUnderstanding the economic slowdown in the Chinese economy is very important because not only does it impact American companies doing business there, but what happens in the Chinese economy—now the second-largest economy in the world—affects the global economy.

While media outlets tell us the Chinese economy will grow by about seven percent this year (30% below the 10% the economy has been growing annually over the past few years), the … Read More

Where to Find Value in an Overbought Market

By | February 20, 2014

What Stocks to Buy in an Overbought MarketMany smaller companies are now reporting their financial results, and very soon, it will be the lull between earnings seasons, when the only fuel the marketplace has to go on is monetary policy and economic news.

It wouldn’t surprise me at all if stocks took a break for the entire second quarter. Fourth-quarter financial results were decent, but they weren’t the kind of numbers that justify loading up on positions. … Read More

Financial Reports

Why a Serious Stock Market Correction is Overdue

By | December 9, 2013

Serious Stock Market Correction is OverdueThere is going to be considerable pressure on interest rates and the Federal Reserve very soon, and it’s very likely that we’re going to get some choppy trading action in stocks. The reason for this is, of course, positive economic news, which is increasing the likelihood of a decrease in monetary stimulus. As contradictory as it may seem, good economic news is actually bad news for stocks; that’s just the … Read More

The Day People Woke Up and Said, “I Need to Rush Out and Buy Stocks”

By | November 20, 2013

 key stock indicesCan you believe the mainstream headlines these days? I’m reading about the Dow Jones Industrial Average going to 19,000… I’m reading that stocks are rising because the amount of stocks for investors to buy has diminished…

It’s all rubbish!

The chart below of the Dow Jones Industrial Average breaking above 16,000 makes it look like people just woke up the morning of November 18 and said, “I need to rush … Read More

Regardless of Change in Monetary Policy, I’m Still a Big Fan of These Types of Stocks

By | September 17, 2013

Regardless of Change in Monetary PolicyEverything in capital markets is basically on hold until there is certainty regarding monetary policy and the prospects of a reduction in quantitative easing (QE).

The stock market reaction to the Federal Reserve’s last monetary policy statement wasn’t good, and there was seemingly a misinterpretation by institutional investors as to what the central bank’s actual intentions were for reducing QE. But stocks recovered, and the equity market remains resilient.

Over … Read More

Two Important Factors Now Working Against Stocks

By | August 30, 2013

stock marketGeopolitical events are overtaking the stock market’s near-term trading action, which was all about speculation over the Federal Reserve and what Chairman Ben Bernanke will do regarding quantitative easing.

Based on what transpires in Syria, the equity market is ripe for more declines; realistically, the stock market has been extremely lofty this year, considering the economic news and the prospects of reduced monetary stimulus.

Confirming the overly positive disposition of … Read More

Why Corporate Earnings Are Taking a Back Seat to the Fed

By | August 19, 2013

blue chipsThe second-quarter earnings season is considered over, but there are still a number of companies reporting. And the same trend continues—the numbers are anemic.

Making the case for a rising stock market in the face of little sales growth and earnings results that are basically just meeting expectations is difficult. The stock market’s performance for the last few years has been very much due to the monetary expansion, followed by … Read More

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