recession

5 Reasons Why the Global Meltdown is Just Getting Warmed Up

By Thursday, September 3, 2015
Global Stock Market CrashLate last year I wrote an article suggesting the U.S. could enter a depression in 2015. To some it sounded farfetched at the time. After all, the stock market was at record highs and investors remained bullish. But it seemed to me that all the economic evidence pointed to a U.S. financial crisis. I think the same conditions are in play. In fact, I think the global meltdown is just .

Global Economy: If Only China Was the Biggest Problem

By Wednesday, September 2, 2015
Global EconomyFor months, I have written in these pages about how the slowing global economy would wash ashore to America and infect our own companies. I posted repeated charts in Profit Confidential that showed leading indicators like the Baltic Dry Index and copper prices were collapsing, foretelling of poor economic conditions ahead. And wouldn’t you believe some of my own analysts ridiculed me in face of what was once the booming .

Canada Officially Enters Recession; China Stock Market Crash to Blame

By Tuesday, September 1, 2015
Chinese-Stock-Market-CrashThe impact of China’s stock market crash is sending shockwaves around the world, leaving the global economy on the verge of economic collapse in 2016. On Tuesday, StatsCanada revealed the Canadian economy officially entered a recession. The country’s economy contracted by 0.5% during the previous three months, marking the second straight quarter of falling economic activity. (Source: Gross domestic product by industry, September 1, 2015.) The numbers only get uglier .

Stock Market Crash: China Could Spark an Economic Collapse in 2016

By Friday, August 21, 2015
China Stock Market CrashAfter a colossal stock market crash in June, many analysts are worrying that China is on the brink of an economic collapse. Panic is setting in as the country experiences a dramatic slowdown in exports and growth. A recession in China would precipitate crises across the world, drawing an eerie parallel to the U.S.-led contraction during the last decade. After markets collapsed in 2008, we often heard the phrase, “the .

U.S. Economy: Why Recession’s Knocking

By Friday, August 21, 2015
RecessionWhat used to be a leading indicator, the stock market has now become a lagging indicator. For months (in these pages), I have written about how sick the U.S. economy has become. Stock market investors are waking up to the reality that world economic growth is either non-existent or even contracting—albeit too late. The Dow Jones Industrial Average is now solidly in the red for 2015, down 832 points since .

Recession Ahead for U.S. Economy; These Two Indicators Say Yes

By Wednesday, June 17, 2015
recessionSome very interesting news (or should I say warnings) to share with my readers today… If you’ve been reading Profit Confidential for some time now, you know I am predicting a recession in late 2015 or early 2016. A recession is technically defined as two consecutive quarters of negative gross domestic product (GDP). We are almost half-way there (in respect to a recession happening) because we experienced negative GDP growth .

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 .

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 .

Recession in Late 2015 a Strong Possibility as U.S. Economy Slows at Alarming Pace

By Friday, May 22, 2015
Recession in Late 2015Is the U.S. economy getting close to a recession? Rising business inventory and slowing consumption say yes. In these pages, I have argued over and over again that consumption data is important; it’s the biggest part of the U.S. gross domestic product (GDP) calculation. And, currently, consumption in the U.S. economy is stalling at an alarming pace. I look at consumer consumption to see how businesses are reacting, and how .

U.S. Economy Faces Budget Crisis in 32 American States

By Thursday, May 21, 2015
U.S. EconomyWe are frequently told that the U.S. economy has recovered from the Great Recession of 2008 and 2009. However, according to a recent report, 32 states still face budget gaps in fiscal 2015, 2016, or both. (Source: Reuters, April 27, 2015.) Does a Revenue Problem Mean Higher Taxes in the Future? The fact that a majority of states are facing budget gaps “serves as an early warning,” according to S&P .
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)

17.44

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.

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

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