New York, NY (PRWEB) January 12, 2009
Market expert George Leong, writing in the popular on-line investment and market letter Profit Confidential, advised readers that despite the current atmosphere of cautious optimism in the U.S., investors should not get overconfident. "Once the glitz of the inauguration ball is over, the then President Obama will have to face a hostile economy and investment climate," Leong warns.
In his report released today, Leong expressed concern about the effect the global slow down would have on the U.S. export market, saying, "The economic slowing has spread worldwide and this will impact the demand for U.S. goods and services. Unless this reverses, the U.S. economy will continue to struggle." Leong urged international action, writing, "The current world crisis needs more concerted efforts from world banks and governments in order to prevent a deflationary setting and a potential depression. Yes, the near-term outlook is not good and could get worse."
Leong also worries about the poor U.S. job market, noting, "ADP Employer Services did a survey that showed the loss of 693,000 private jobs in December, adding to 476,000 jobs lost in November. The results are not a surprise, as the jobs market remains a significant concern that will continue to drive down consumer confidence and spending. A weak non-farm jobs report on Friday will confirm the weak jobs market." Leong writes that such continuing job weakness could pose more serious risks than many would realize. "The fear is that, if this trend continues, it would result in a deflationary environment, which is not good. Deflation will make consumers refrain from spending and wait for lower prices. The concern is that reduced spending would drive down corporate activity and this could lead to more slowing…This could mean more hard times for investors going forward into 2009."
Though hopeful that the economic stimulus spending proposed by President-Elect Obama will help the economy recover, Leong does not see it having an immediate impact. "[Obama] has pledged a massive infrastructure strategy to create jobs and get the U.S. economy back on track, but it will not be that simple, as there will be numerous factors out of his control." He concludes by telling investors, "I'm not trying to scare you, but you should be aware the situation could get much worse in 2009 before we see any reversal from the current negative investment climate."
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