Phase Two of a Secular Bear Market Still Upon Us, According to Popular Financial e-letter Profit Confidential

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Profit Confidential, the popular stock market and economic e-letter, says that we are in Phase II of a long-term bear market.

Corporate earnings are strong. But the long-term structural problems of the U.S. (underemployment of 16.5%, interest rates that have bottomed and can only rise, a fiat currency in too much supply, and inflation) will eventually overcome corporate America.

Profit Confidential, the popular stock market and economic e-letter, says that we are in Phase II of a long-term bear market.

According to Profit Confidential, “A 20-plus-year bull market in stocks ended in October of 2007. A bear market started in October of 2007 which served to send stocks to a 12-year low on March 9, 2009.” What Michael Lombardi, a lead contributor to Profit Confidential, refers to as Phase I of the bear market. “On March 9, 2009, a bear market rally was born. That rally, which is a classical Phase II of a bear market, has been going on now for 31 months. Bear market rallies last three to four years.”

Profit Confidential says that strong earnings growth is coming from corporate America. Pessimism amongst stock advisors and investors is also very high. The popular daily e-letter says that bear market rallies continue higher under such a scenario. A bear market rally has only one purpose: to give investors the false hope that all is well and that stocks are a safe bet. “We’re not there with this mentality yet, but that’s where we are headed. And when we reach that point, that’s when the bear market will start to head south (Phase III) towards its March 9, 2009 low.”

Michael Lombardi writes, “Corporate earnings are strong. But the long-term structural problems of the U.S. (underemployment of 16.5%, interest rates that have bottomed and can only rise, a fiat currency in too much supply, and inflation) will eventually overcome corporate America and the stock market.”

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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