New York, NY (PRWEB) December 24, 2008
Financial expert Michael Lombardi, writing in today's issue of the popular on-line investment and market letter Profit Confidential, struck a cautiously optimistic note on the U.S. economy, but cautioned investors that, "Given the length of the economic boom the U.S. experienced, the contraction will be long."
In his report released today, Lombardi approved of the recent actions of the Federal Reserve, predicting that, "all the efforts of the Fed and government will kick in to jump-start the economy." Lombardi recalled that such interventions have a proven track record of success in the United States, writing, "After the tech bubble of 1999, the Fed was successful in maneuvering monetary policy to thwart a damaging recession. Similarly, after the terrorist attacks of 2001, the Fed was again very successful at saving the economy from a severe downturn."
Lombardi is not blind to the continuing bad news, noting, "President-elect Obama's Council of Economic Advisors is now expecting three to four million more American jobs lost in 2009. Hence, they are working on an even more ambitious stimulus package." Nevertheless, he feels that signs of the eventual recovery are becoming clearer. "The stock market, as a leading indicator, does not seem concerned at the moment about the three to four million more job losses that the Obama team expects in 2009 and the eventual economic impact." Lombardi goes on to say, "It's also very promising that the Dow Jones Industrial has yet to break below its 2002 low. After all, aren't these economic times a lot worse than what we saw in 2002?"
Lombardi has some words of warning, however, for over-eager investors. "There is a great temptation for contrarians these days - the temptation to jump into the stock market with both feet. For me, it is still too early to call the bottom of the stock market. In fact, we could be in a classic bear market trap." He goes on to say, "Great fortunes will be made in this recession by buying at the bottom - that goes for the stock market and real estate. The key is determining when that bottom is here." Lombardi concludes by promising, "That's something I'm working on every day for my readers."
For the full report, please visit: http://www.profitconfidential.com
About 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