GDP growth

Robert Shiller: Dow Jones Industrial Average Could Crash 30%

By Friday, August 28, 2015
Dow Jones Industrial Average Could CrashAfter Wall Street’s spectacular meltdown last week, Nobel laureate Robert Shiller is ready to forecast a full-blown stock market crash. Although second-quarter gross domestic product (GDP) growth was revised up from 2.3% to 3.3%, equities are chronically overvalued and need a massive sell-off before they fall in line with reality. (Source: The Wall Street Journal, August 27, 2015.) The panic began on Monday, August 17th, when the S&P 500 .

Oil Prices Outlook: Tight Trading Range Makes Oil for Traders Only

By Wednesday, July 15, 2015
Oil Prices OutlookOil continues to gush out of the Middle East, North Dakota, Texas, and the Alberta tar sands in Canada. My oil prices outlook continues to be neutral at this point, even with the recent decline. Some would argue there have been over 800 or so oil rigs placed in idle. But the reality is the best producing oil rigs are still pumping out the black crude. Not only is oversupply .

United States GDP Rate June 2015

By Thursday, June 25, 2015
The United States’ gross domestic product (GDP) contracted less than expected in the first quarter of 2015; uplifted by stronger household spending, inventories, and residential fixed investment. On Wednesday June 24th, the Bureau of Economic Analysis (BEA) released its third and final estimate of the U.S. GDP for the first quarter of 2015. The world’s largest economy shrunk in Q1 2015 and real GDP decreased at an annual rate of .

U.S. Economy Down: First Quarter 2015 GDP Showing Decrease

By Friday, May 29, 2015
U.S. GDPOn Friday, May 29, the Bureau of Economic Analysis released the second estimate for first-quarter gross domestic product (GDP) of 2015. (Source: Bureau of Economic Analysis, May 29, 2015.) According to the report, U.S. GDP declined at an annual rate of 0.7% in the first quarter of 2015. The report last month, in its first estimate, suggested an increase of 0.2%. The downward revision was mainly due to more imports .

First-Quarter GDP Proves U.S. Economy Fragile

By Wednesday, May 6, 2015
US Economy fragileFor most of 2015, I have been writing about how the U.S. economy is growing at a very slow pace, if it’s growing at all. The just-released U.S. gross domestic product (GDP) numbers for the first quarter of 2015 confirm this; the economy grew at an annual pace of just 0.2% in the first quarter of this year. But a closer look at the GDP numbers reveals something worse than .

Massive U.S. Debt ($57k+ a Person) Will Force Interest Rates Higher

By Friday, February 27, 2015
Interest rates will riseThis week, the “official” U.S. national debt hit $18.12 trillion. That’s a debt of about $57,000 for each American citizen, regardless if you are a child, adult, or senior! And factors like defaulting student debt and higher interest payments will only push our debt much higher. Consider this: at the turn of the century (in 2000), the U.S. national debt stood at $5.7 trillion. (Source: Treasury Direct, last accessed February .

To See Where Stocks Are Headed, Look at These Two Indicators

By Monday, February 9, 2015
See Where Stocks Are HeadedTo see where the stock market is headed in 2015, we don’t have to look much past these two important economic factors: the U.S. dollar and the economy, both domestically and outside the U.S. Rising U.S. Dollar to Impact U.S. Equities After the Great Recession, to drum-up sales, U.S. companies focused their attention elsewhere in the global economy. With the U.S. dollar sliding lower in value back then, American companies .

Economic Stalling in Eurozone Inevitable?

By Friday, November 7, 2014
Economic Stalling in Eurozone InevitableWhen Germany recently announced some underachieving economic numbers, it was a red flag for the eurozone and Europe. When the stronger of the two pillars in the eurozone (France being the other pillar) begins to show some fragility, you have to take a step back to evaluate the situation. Now, it shouldn’t be a complete surprise to you that there are growth issues brewing in the eurozone, especially given the .

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. .

Why China Catches My Eye as a Top Opportunity Right Now

By Friday, July 18, 2014
My Top Three Foreign Investment OpportunitiesA few years ago, investors couldn’t get enough of Chinese stocks. This led to numerous frauds committed by crooks in China that has since tarnished the reputation and reliability of all Chinese companies, whether they’re legitimate or not, despite their operating in one of the top growth areas in the world. While I’m not focused on Chinese stocks at this moment due to better trading opportunities in the domestic stock .
Sep. 2, 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 2.71%
10-year U.S. Treasury Yield 2.14%

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: The $2 Silver Stock Every Investor Should Own!

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