Popular Financial e-Letter Profit Confidential Reveals Why Phase II of the Bear Market Has Been So Long 'This Time Around'

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Profit Confidential, the popular stock market and economic e-letter, says today that, once the bear market rally that started in March of 2009 is over, the bear market will likely test its low set on March 9, 2009, of 6,440 on the Dow Jones Industrial Average. Profit Confidential says the bear market isn’t over; it’s just been delayed from completing its cycle due to Keynesian-type fiscal and monetary intervention, hence why Phase II of this bear market has been so long.

phase II of the bear market

Phase II of the Bear Market

Increasing the U.S. national debt to help the economy was the easiest, less painful way.

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Profit Confidential, the popular stock market and economic e-letter, says today that, once the bear market rally that started in March of 2009 is over, the bear market will likely test its low set on March 9, 2009, of 6,440 on the Dow Jones Industrial Average. Profit Confidential says the bear market isn’t over; it’s just been delayed from completing its cycle due to Keynesian-type fiscal and monetary intervention, hence why Phase II of this bear market has been so long.

According to Profit Confidential, “There were two ways to fight the recession and the credit crisis: increase the U.S. national debt and have government spend its way out the recession or let the too-big-to-fail companies fail…let the economy hit bottom…and have it come back on its own. The Obama Administration chose the easiest path. And, in all reality, any government presiding in Washington would have chosen the path the Obama Administration did. Increasing the U.S. national debt to help the economy was the easiest, less painful way.”

Profit Confidential says that it was John Maynard Keynes who, way back in the early 1900s, popularized the use of fiscal and monetary policies to stimulate the economy. The governments of most developed countries have been advocates of Keynes’ work. Profit Confidential is in the economic camp that believes Keynes was wrong in his work…that the economy should be able to expand and contract itself without interference from government. According to Profit Confidential, bull markets and bear markets should play themselves out.

Michael Lombardi, a lead contributor to Profit Confidential, writes, “Under the Obama Administration, the U.S. national debt will have risen approximately $5.0 trillion—that’s almost a 50% increase from when President Obama took office and the biggest four-year increase in the U.S. national debt under any president.”

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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