New York, NY (PRWEB) December 5, 2008
Michael Lombardi, MBA, writing in today's Profit Confidential, a popular on-line investment and market letter, warns against recent reports by analysts calling the bottom in the real estate market and stock market.
In his report released today, Lombardi states, "A decade of economic expansion does not come to a halt after one year of economic contraction. There is more pain ahead for the housing market as the inventory of unsold homes is just too overwhelming for the market to absorb. Financing conditions remain very difficult; consumer confidence in the housing sector has been crushed."
Lombardi warned of the coming U.S. recession long before most economists even considered it a threat. Writing in Profit Confidential back in November 13, 2006, Lombardi said, "You've been reading my articles over the past few months and have seen how negative I've become on the U.S. economy. Particularly, I believe it's the ramifications of the faltering housing sector which is being underestimated by economists. A recession doesn't take much to happen. It's disappointing more hasn't been written on the popular financial sites and in the newspapers about the real threat of a recession happening in 2007. I want my readers to be fully aware of my economic opinion: I wouldn't be surprised to see the U.S. economy in a recession sometime in 2007. In fact, I expect it." It was not until December 1, 2008 that we had our "official" recognition of the U.S. recession from the National Bureau of Economic Research.
In his article that appeared in the popular Profit Confidential e-letter today, Lombardi says,
"As for the stock market, my statistics show there is plenty of stock to still come out--there is a greater inventory of stock to be sold than buyers willing to buy them. Any stock market rallies we see, in my opinion, are classical bear market traps. General business conditions in the U.S. are pathetic and continue to erode daily. Trend with caution."
For the full report, please visit: http://www.profitconfidential.com
About Lombardi and Profit Confidential:
Profit Confidential is Lombardi Financial's free daily investment and market e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, other investments and the economy. Lombardi Financial is a division of Lombardi Publishing Corporation, one of the world's largest newsletter companies, now with over one million customers in 141 countries.
For more information, visit: http://www.profitconfidential.com