stock market rally

Another Warning Sign: Stocks Hit Highs on Collapsing Volume

By Friday, September 5, 2014
The Only Bear Left StandingSo the S&P 500 has touched the 2,000 mark. Will the S&P 500 continue to march to new highs? Well, my opinion towards the stock market hasn’t changed. I remain skeptical for a variety of reasons, many of which I have shared with my readers over the past few months. But I have a new concern about the stock market, something that hasn’t been touched on by analysts: trading volume .

Feel Like You Are Missing Out?

By Wednesday, August 27, 2014
Stock Market Correction Very HighIf you follow the financial news, it feels like the stock market is moving higher and higher…a situation in which investors often feel they are missing out. But the reality of the situation is very different. So far this year, almost eight full months in, the Dow Jones Industrial Average is up only three percent. Would you buy stocks with the Dow Jones trading at 17,100, near a record-high price-to-earnings .

Stock Market Fake? Economic Growth Falls to Slowest Pace Since 2009

By Friday, August 22, 2014
Eurozone Economic Growth PrecariousNot too long ago, I reported that Italy, the third-biggest economy in the eurozone, had fallen back into recession. Now Germany’s economy is pulling back. In the second quarter of 2014, the largest economy in the eurozone witnessed a decline in its gross domestic product (GDP)—the first decline in Germany’s GDP since the first quarter of 2013. (Source: Destatis, August 14, 2014.) And more difficult times could lie ahead… In .

Why Higher Interest Rates Will Become a Necessity

By Monday, July 21, 2014
A Weak Economy Masked By an Artificial Stock Market RallyLet’s start with the U.S. housing market. Has the recovery for it ended or just stalled? My answer comes in one sentence: While it’s always a matter of location, only the high-end housing market is doing well, while the general market is weak. I can see it in the mortgage numbers. People just aren’t taking loans to buy homes in the U.S. economy. In fact, mortgage applications are tumbling. In .

Investors Forgot Everything That Happened Just a Few Years Ago?

By Monday, July 14, 2014
The Economy and the Stock MarketThere are two important charts I want my readers to see this morning. The first is a chart that is an indirect measure of demand in the global economy. Right now, the Baltic Dry Index (BDI) sits at its lowest level of the year. Since the beginning of 2014, the BDI has fallen 60%. The BDI measures the cost of moving major raw materials by sea in the global economy. .

Guess Who Is Pushing the Stock Market Higher Now

By Monday, June 23, 2014
So That's Why Stocks Have Been Moving Higher…When I look at the stock market, I ask who in their right mind would buy stocks? While key stock market indices creep higher, the fundamentals suggest the complete opposite. But despite valuations being stretched, insiders selling, corporate revenue growth being non-existent, and the U.S. economy contracting in the first quarter of this year, the S&P 500 is up seven percent since the beginning of 2014, the Dow Jones Industrial .

Have I Got a Deal for You! The Stock Selling at 573 Times Earnings That Just Keeps Rising

By Tuesday, April 1, 2014
Have Stock Market Investors Lost Their MindsStock market valuations are severely stretched by historical standards. Earnings multiples and other financial ratios no longer make sense. But despite this, investors are still buying. I continue to preach: the days left in the stock market’s rise are numbered. As I see it, excessive speculation rules the stock market right now. And that is dangerous because investors are making decisions that they shouldn’t be making. Irrationality is growing. Those .

Why I’m So Cautious About 2014

By Friday, January 17, 2014
170114_PC_lombardiDon’t for a second believe consumer spending in the U.S. economy is improving! J. C. Penney Company, Inc. (NYSE/JCP) has announced it will be closing 33 stores in the U.S. economy. By doing this, the retailer will save about $65.0 million a year starting in 2014. 2,000 employees will be let go. (Source: J. C. Penney Company, Inc., January 15, 2014.) Macy’s, Inc. (NYSE/M) is also closing stores. Best Buy .

What Bernanke Cemented for Wall Street Yesterday

By Thursday, December 19, 2013
Why This Next Stock Market Bust Is Going to Be a DoozySomething very interesting happened yesterday. The Federal Reserve said it would start “tapering” its quantitative easing program by $10.0 billion a month. In other words, the Fed will now print $75.0 trillion a month in new money instead of $85.0 trillion a month. Firstly, the whole concept of the central bank printing money out of thin air never made sense to me because the money isn’t backed by anything. The .

Days of Stock Market Irrationality Numbered

By Tuesday, November 5, 2013
key stock indicesIn the first 10 months of the year, key stock indices like the S&P 500 have gone up more than 20%. Others like the Dow Jones Industrial Average have lagged a little, but the returns are exuberant nonetheless. But as this was all happening, we saw the formations of very troubling trends in the fundamentals that drive key stock indices higher. Companies on key stock indices started to show corporate .
Sep. 5, 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.

Poll

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

View Results

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

Read this message