Stock prices will move higher from current levels, says Michael Lombardi, a lead contributor to Profit Confidential.
New York, NY (PRWEB) October 10, 2011
Profit Confidential, the popular stock market and economic e-letter, lists today its four reasons why stock prices will move higher from current levels.
According to Profit Confidential, “Stocks have become severely oversold. The stock market is acting as if we are already in a recession. The dividend yields on many major corporations are back up over four percent... in an environment where the 10-year U.S. Treasury is yielding 1.9%. The stock market is saying that it believes companies will cut their dividends. The bond market is saying that we are headed for years of no economic growth. We believe there is an overreaction to the situation.”
Profit Confidential says stock prices have fallen too fast, too quickly. The popular financial e-letter believes that stock prices will bounce higher from their current oversold levels and presents four reasons why stocks will bounce higher.
Michael Lombardi, a lead contributor to Profit Confidential, writes, “The number of bearish stock advisors sits at its highest level since March of 2009, the S&P 500 is trading at only 10.2 times forecast 2012 earnings, The Chicago Board Options Exchange Volatility Index, also known as the VIX, sits at a ‘panic’ level of 40, and the stock market has just put in its worst quarterly performance since the quarter ended March 31, 2009.” Lombardi writes that these four factors, especially happening at the same time, are very bullish for stocks.
Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market... before it plunged.
Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.
To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.
Profit Confidential is Lombardi Publishing Corporation’s free daily investment 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, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.
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