New York, NY (PRWEB) December 15, 2008
Michael Lombardi, MBA, writing in today's Profit Confidential, a popular on-line investment and market letter, predicted that historians would soon consider our current economic situation to be the worst since the end of the Second World War, and warned that the worst of the housing market foreclosures are yet to come.
In his report released today, Lombardi states, "The storm we are facing in the economy today is as strong as most of us can remember. Companies continue to tighten their operations, job losses continue, and the government tries its best by pouring billions of dollars into the 'system' in its effort to halt a deflationary spiral. By the time this is all over, economists will re-write history changing the worst recession of the post World War II era from the 1974 recession to the 2008-2009 recession."
Lombardi is deeply concerned about the U.S. housing market's prospects for 2009. "Next to job losses, foreclosures are a huge problem. According to a report released yesterday by RealtyTrac Inc., one million Americans may lose their homes in 2009. About seven percent of all U.S. home mortgages are 30 days or more delinquent and three percent of all U.S. home mortgages are in the foreclosure process. The worst hit is Las Vegas, where one out of every 61 homes is in foreclosure." He goes on to add, "There is no doubt that 2009 will be a terrible year for U.S. foreclosures. The 'foreclosure holiday' the banks are on right now …will come to an end."
Despite the poor economic outlook for the upcoming year, Lombardi does offer some hope. "For investors with the guts to go against the trend, there are some very encouraging trends developing. First, according to RealtyTrac, 259,085 foreclosure notices went out in November -- the lowest amount since June 2008. Second, the Dow Jones U.S. Home Construction Index is now at the same level it was in July 2008. Comparatively, the Dow Jones Industrial Average has only recovered to the same trading level it was in mid-October 2008." He concludes by suggesting that the savvy investor might wish to soon acquire property, writing, "For the investors that can see past today's doom and gloom and go against the popular trend, there are some great deals appearing in the real estate market, both residential and commercial."
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