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

investment advice

This Large-cap Chinese ETF
Ideal for Long-term Investors

By | April 27, 2012

Chinese stocksThe Shanghai Composite Index (SCI) has been rallying and is up 9.3% this year as of Thursday, which is ahead of the Dow Jones Industrial and just below the S&P 500.

However, playing the Chinese capital markets involves excessive political and economic risk. The country is also stalling, but continues to grow well above other global regions, including Europe and the eurozone. My investment advice is that you need to … Read More

Spending Remains an Issue;
My Advice on Retail Investing

By | September 19, 2011

The fact that consumer spending has not tanked in spite of unemployment being at over nine percent and expected to stay around this level through 2012, and continued weakness in housing is encouraging.

European Situation Likely to
Worsen: My Investment Advice

By | September 14, 2011

We have a likely debt default in Greece, pegged at a whopping 98%. Ireland and Portugal continue to struggle with muted growth and massive debt. Spain may be needing help. Bond yields are rapidly increasing in Europe in line with the risk levels. You can get a whopping 70% yield in Greek bonds, but then the bonds are likely to default. In comparison, the current yield on a U.S. 10-year bond is less than two percent. Germany and France are suffering due to their focus on the poorer nations. Germany is said to have no issues letting Greece default and then dealing with the debt crisis mess after.

Retail Stocks: Showing Some Improvement

By | August 15, 2011

I must admit the fact that consumers continue to spend despite any strong or sustained job growth and continued weakness in housing is encouraging. With consumer spending accounting for two-thirds of GDP, retail sales will eventually be stronger when the jobs and housing areas improve, albeit it will likely take over a year.

Investment Advice: Managing
Risk’s Key Given the Volatility

By | August 12, 2011

The overall stock market bias continues to be bearish. The selling capitulation remains in effect. Just take a look at what happened on Wednesday:
– DOW down over 500 points
– S&P 500 down over 100 points
– NASDAQ down over 50 points
The fact that we have yet to see a firm bottom makes the situation dangerous.

Financial Reports

Fire Sale of Stocks Could Get Bigger

By | August 10, 2011

This is not a market for the risk-adverse. Watching the key stock indices plummet over 10% in less than a week is scary and nerve-wracking. But the world is not ending. That I can say.

Austerity Measures: Why They
Will Happen in America Next

By | August 4, 2011

I’m in Modena today, home of the iconic “Ferrari” brand. My mind is wandering quickly…thinking about Europe and America. Invariably, I wander off to government austerity measures. I apologize in advance to my readers if I have been talking too much about this as of late. But that’s all I hear from people here. They are upset. Governments in Europe are cutting fast and deep.

My Best Stock Advice on the Retail Sector

By | July 29, 2011

Consumer spending drives the economy and gross domestic product (GDP) growth, accounting for about 70% of GDP in the U.S. The retail sector has been rebounding in spite of the lack of jobs and the declining home prices. The S&P Retail Index (RLX) is trading near its 52-week high, up 37% from the 52-week low. The RLX recently traded at its highest level since the index was created in 2007.

Stocks Aiming Higher, But
Don’t Forget That Risk

By | July 25, 2011

On July 19 and 21, the key stock indices surged towards their respective multi-year highs. The key stock indices have shown some resilience after battling back from being down nearly 10% this year to the point where the S&P 500 is less than two percent from its multi-year high. The key stock indices are aiming higher, but I sense that it will not be an easy route to a breakout given the difficult resistance as stocks move towards the upper levels.

Why Chinese Reverse Takeovers Significantly Lag the S&P 500

By | July 20, 2011

Since the financial crisis, the global equity markets have shown a solid turnaround before witnessing some sort of risk aversion during 2011, as the European problems continued to worsen. Asian equities have been the worst-performing markets year to date, whileU.S.markets ranked amongst the top performers.

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