USD-CAD Exchange Rate: Canadian Dollar Battering Could Last For Decade

By Friday, August 21, 2015
USD-CAD Exchange RateImage by rick
The Canadian dollar has plunged this year. And this might only be the beginning, according to analysts at Macquarie Capital Markets. In July, the Canadian dollar dipped to its 11-year low against the mighty greenback. Right now, one Canadian dollar would only get you 76 cents in USD. Back in July 2011, a Loonie would get you more than one USD. That was a more than

Growth Stocks Being Dumped a Big Warning Sign?

By Monday, August 10, 2015
Growth Stocks Being DumpedIf you have been holding small-cap growth stocks over the past several weeks, you have probably noticed that many of these higher beta stocks are being dumped indiscriminately. If you don’t actively monitor your portfolio, you’d better begin, as there could be more selling. Smaller companies, or those many refer to as companies with a market capitalization below $1.5 billon, tend to trade in line with the economy and growth. .

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 .

Housing Market: Affordability and Interest Rates Working Against Higher Prices

By Monday, July 20, 2015
Housing MarketThe National Association of Realtors’ Housing Affordability Index has dropped 12% in the first five months of 2015. (Source: National Association of Realtors, last accessed July 16, 2015.) In January, the qualifying income to get a mortgage for an existing median-priced home in the U.S. was $36,576. In May, buying a median-priced home would require $41,712 in income. Let’s be honest; incomes in the U.S. economy haven’t increased by much .

U.S. Inventory Stockpile Up to Size of Canada

By Friday, July 17, 2015
U.S. Consumer SpendingIn June, retail and food service sales in the U.S. economy declined 0.3% from May. When calculating these sales figures, the Census Bureau looks at 13 different kinds of businesses. In June, seven of those business types reported an outright decline in sales. (Source: U.S. Census Bureau, July 14,2015.) In particular, American consumers are pulling back on their spending of discretionary staple items such as furniture and clothing, building material, .

Stock Market Investing: Watch the False Confidence

By Friday, July 17, 2015
Stock Market Investing False ConfidenceWatching the stock market rise for the fourth straight day on Tuesday, I’m left wondering about the false confidence that appears to be on the surface. My view is that the current state of stock market investing should continue to be guarded with caution and selling into strength. Greece and its lenders appear to have a deal in place; it’s true. But the Greek parliament still needs to approve it. .

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 .

Interest Rates: Six Reasons They Are Going to Go Up

By Monday, June 22, 2015
Interest RatesThe Federal Reserve provides projections on U.S. gross domestic product (GDP) four times each year; in March, June, September, and December. Just a few days ago, the Fed released its June projections. The Fed expects the U.S. economy to grow between 1.8% and two percent this year. (Source: Federal Reserve, last accessed June 17, 2015.) The mainstream will take this number and run with it. But what you won’t hear .

Leading Indicators Show Improving U.S. Economy

By Friday, June 19, 2015
Leading Economic IndicatorsJust one day after Janet Yellen reported moderate economic growth, a crucial indicator confirmed the Federal Reserve’s analysis. On Friday, June 19th, the Conference Board released its widely-followed Leading Economic Index, a composite of indicators that hint at future growth. The index clocked in at 0.7% in May, exceeding expectations by 30 basis points. (Source: Conference Board Press Release, June 18, 2015.) The board also released its coincident and lagging .

U.S. GDP Contracts in 1Q15; Economy Halfway to a Recession This Year

By Monday, June 1, 2015
U.S. GDPEarlier this year in Profit Confidential, I wrote that I wouldn’t be surprised to see the U.S. economy enter a recession in 2015. I got a lot of flak here from my fellow economists…even some of my customers thought that prediction was too far off. But, lo and behold; we are already halfway there. On Friday, according to the revised numbers, we learned that U.S. gross domestic product (GDP) contracted .
Sep. 4, 2015
Trailing 12-month EPS for Dow Jones companies (Most Recent Quarter) $1014.15
Trailing 12-month Price/earnings multiple (Most Recent Quarter)


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.


For the rest of 2015, what's your take on the stock market?

View Results

Loading ... Loading ...
From: Michael Lombardi, MBA
Subject: 200% Profit on the Ultimate "Fear Gauge" Play

Read this message