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

gross domestic product

Why Wal-Mart’s Sales Downgrade Should Worry Investors

By | October 24, 2014

Why Wal-Mart's Sales DowngradeOn November 30, Switzerland’s citizens will cast a very critical vote.

Through a referendum, they will vote for or against the Swiss National Bank increasing its gold bullion reserves to 20%, the central bank halting the selling of gold, and the storing of gold bullion in the country. (Source: Kitco News, September 30, 2014.)

If the results are in favor of the referendum, it will mean Switzerland’s central bank will … Read More

Two-thirds of Americans Sit with Less Than $25K in Savings, Investments

By | November 21, 2012

Two-thirds of Americans Sit with LesConsumer spending, which is so desperately needed, only increases when consumers are happy—when they are confident about their jobs, savings, investments, and overall wealth.

Right now in the U.S. economy, none of that is present. For consumer spending to increase, you need consumer confidence in the U.S. economy to increase. I don’t see it, even after multiple rounds of quantitative easing and the government adding a significant amount of debt. … Read More

Why a Severe Stock Market Correction’s Imminent

By | November 14, 2012

Severe Stock Market Correction’s ImminentIn a sense, the stock market continues to be held hostage by the continuing sovereign debt crisis in the eurozone and the “fiscal cliff” in the U.S. But investor sentiment changed before recent worries regarding these two issues, and corporate earnings growth is slowing. I think we’ll be very lucky to see any gross domestic product (GDP) growth next year from Western economies.

Wall Street still expects broad-based earnings growth … Read More

More Signs That China’s on a Global Hunt for Resources

By | November 14, 2012

Global Hunt for ResourcesChina may be slowing, but the resource-hungry country is always on the hunt for resources to help fuel its industrial growth in the decades ahead. And if you believe the country and its objective to double its gross domestic product (GDP) by 2020 (read “China’s Golden Years Still to Come”), then you have to believe that reliable resources will be needed. This means internal exploration and the buying of foreign … Read More

A Ponzi Scheme Called America

By | October 16, 2012

dollar with magnifying glassAs we all know, the eurozone credit crisis has taken away any chance of economic growth in the global economy.

Spain—the current epicenter of the credit crisis in the eurozone—has seen its credit rating downgraded to a credit rating of BBB- from BBB+ by the Standard and Poor’s (S&P) credit rating agency. A credit rating of BBB- is the lowest investment grade credit rating issued by S&P and just one … Read More

Financial Reports

Here’s Why Chindia Will Be Sizzling Hot for Spending

By | October 16, 2012

Chindia Will Be Sizzling Hot for SpendingThe majority of you have likely heard of the growing reference to “Chindia,” the regions of China and India. The explosive demand for goods and services here will be driven by a combined population of about 2.5 billion people, or about 37% of the world’s population.

Yet it will not be just the staggering growth in population that will substantially increase demand, but also the size of each country’s economy … Read More

U.S. Economy Following Path of Greece & Spain?

By | June 8, 2012

national debtThe U.S. Congressional Budget Office (CBO) has issued another scathing report on the state of the mountainous U.S. national debt.

The CBO says the national debt will double by 2026 and reach 200% of gross domestic product (GDP) by 2037 unless firm action is taken to stem America’s annual trillion-dollar deficits. (For the benefit of my new readers, Greece got into trouble when debt-to-GDP in that country hit 130%.)

There … Read More

Blue-chips: Watch & Wait for the Best Ones to Correct Further

By | June 7, 2012

The daily ebb and flow of the stock market really illustrates the degree to which investors buy and sell based on their emotions. Europe says there’s an idea to work more closely on the sovereign debt crisis; the stock market goes up. Europe doesn’t really execute on said idea; the stock market goes down. Granted, it’s tough for an equity investor to make solid choices after all that’s transpired since … Read More

Europe’s Sovereign Debt Means Zero
Growth for the Next Few Years

By | May 30, 2012

sovereign debtJust when the U.S. economy and the housing market are turning up, Europe’s sovereign debt bomb critically injures global capital markets. That’s my biggest fear going forward and it’s a very real possibility. The U.S. stock market would be quite a bit higher if there was more certainty in the eurozone.

Something has to give with Greece. Even with substantial austerity measures, that country’s finances are unsustainable. The bond market … Read More

Global Economies Backtracking

By | May 25, 2012

economic recoveryThe debt and growth problems in the eurozone continue to dominate the headlines. The eurozone countries are looking at the impact of Greece exiting the 17-country eurozone. Greece can’t even elect a coalition government to deal with the austerity measures.

Now there’s news that the eurozone is continuing to slide. Not really a surprise. The eurozone composite Purchasing Managers’ Index (PMI) contracted to 45.9 in May, the lowest level since … Read More

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