economic slowdown

Global Economy Headed for Misery; Be Careful if You Own Stocks

By Wednesday, July 1, 2015

global economyTo gauge activity in the global economy, I follow two indicators very closely: how sales at multinational Caterpillar Inc. (NYSE/CAT) are faring; and trade activity in the global economy.Global Economy Indicator #1The chart below plots the percentage change in three months rolling sales at Caterpillar Inc., a large American company that sells heavy equipment worldwide.As you can see from the chart, since December of 2013, sales at. Read More

Truth Behind So-Called “Recovery” in the U.S. Economy

By Monday, June 15, 2015

U.S. Economy SufferingLast Friday, the U.S. Bureau of Labor Statistics reported that in the month of May, 280,000 jobs were added to the U.S. economy. The unemployment rate was unchanged and stood at 5.5%. (Source: Bureau of Labor Statistics, June 5, 2015.)If you just look at the current unemployment rate, it’s a massive improvement from the 10% unemployment rate seen in the midst of the Great Recession. But here’s what the. Read More

Global Economy: Its Weakness to Impact U.S. Economy and Stock Market

By Wednesday, March 25, 2015

Global economy slowdownWith 20 central banks indicating they may lower interest rates even further, a world economic slowdown underway, and bellwether copper prices collapsing, U.S. multinational companies (and their stock prices) will not escape the malaise facing the global economy.Central Banks Concerned Regarding Global Economic Slowdown?The mainstream media will have you believe central banks across the global economy are slashing their benchmark interest rates. They are right. So far, more. Read More

Low Oil and Copper Prices Tell Us Stock Market in Trouble

By Wednesday, November 12, 2014

Dangers of Low Oil and Copper PricesTo see where the global economy is headed, I follow the prices of oil and copper. The prices of these commodities tell us about demand in the global economy. If the prices of oil and copper are rising, it means there’s prosperity. If the opposite occurs, it means industry (factories) is not busy and that a global economic slowdown is not far away.With this in mind, below is the. Read More

Why Stock Prices Will Continue to Fall

By Wednesday, October 15, 2014

Stock Prices Will Continue to FallNow that the Dow Jones Industrial Average has fallen 1,035 points (six percent) from its mid-September peak, the question investors are asking is “how far will she go?” For small-cap investors, the drama is greater, as the Russell 2000 Index has fallen 12.5% from its July peak.Since 2009, every market pullback presented investors with an opportunity to get back into stocks at discounted prices. Even some editors here at. Read More

Another Warning Sign: Stocks Hit Highs on Collapsing Volume

By Friday, September 5, 2014

The Only Bear Left StandingSo the S&P 500 has touched the 2,000 mark.Will the S&P 500 continue to march to new highs?Well, my opinion towards the stock market hasn’t changed. I remain skeptical for a variety of reasons, many of which I have shared with my readers over the past few months.But I have a new concern about the stock market, something that hasn’t been touched on by analysts: trading volume. Read More

Stock Market Fake? Economic Growth Falls to Slowest Pace Since 2009

By Friday, August 22, 2014

Eurozone Economic Growth PrecariousNot too long ago, I reported that Italy, the third-biggest economy in the eurozone, had fallen back into recession.Now Germany’s economy is pulling back. In the second quarter of 2014, the largest economy in the eurozone witnessed a decline in its gross domestic product (GDP)—the first decline in Germany’s GDP since the first quarter of 2013. (Source: Destatis, August 14, 2014.)And more difficult times could lie ahead…In. Read More

If the Economy Is Improving, Why Are Investors Pricing in a Slowdown?

By Monday, August 11, 2014

U.S. Economy Slowing Down Here in 2014The Bureau of Economic Analysis (BEA) surprised even the most optimistic of economists when it reported the U.S. economy grew at an annual rate of four percent in the second quarter of 2014.On the surface, the number—four percent growth—sounds great. But how serious should we take that gross domestic product (GDP) figure?Firstly, I’d like to start by pointing out that the BEA often revises its GDP numbers downward.. Read More

The Problem With Reality in 2014

By Monday, July 28, 2014

U.S. Economy Halfway to a Recession AlreadyEarlier this month, Jeremy Siegal, a well-known “bull” on CNBC, took to the airwaves to predict the Dow Jones Industrial Average would go beyond 18,000 by the end of this year. Acknowledging overpriced valuations on the key stock indices are being ignored, he argued historical valuations should be taken with a grain of salt and nothing more. (Source: CNBC, July 2, 2014.)Sadly, it’s not only Jeremy Siegal who has. Read More

Stock Market Pricing-in a Recession?

By Wednesday, July 2, 2014

U.S. Economy Close to Technical RecessionBy no surprise to me whatsoever, the government’s third and final estimate of first-quarter U.S. gross domestic product (GDP) came in at a negative annual pace of 2.9%. (Source: U.S. Bureau of Economic Analysis, June 25, 2014.) The U.S. economy’s growth rate in the first quarter of this year was the worst since 2009.I’ve been writing since the fall of 2013 that the U.S. economy would see an economic. Read More

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From: Michael Lombardi, MBA
Subject: Golden Opportunity for Stock Market Investors

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