They are extremely strong, generating good profits and huge amounts of cash. By most accounts, corporations have three times the cash level they did 10 years ago.
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New York, NY (PRWEB) January 06, 2012
With the arrival of 2012, many investors are worried about their assets. With all of this pessimism, Sasha Cekerevac, contributor to popular financial newsletter Profit Confidential, believes this is a great buying opportunity for the long-term investor.
“Generally speaking, you want to buy when people are selling, and sell when people are buying,” says Cekerevac. “Investors have been selling and pulling out of the market every month since May. Historically, when so many people have sold their stocks, it has provided a great buying opportunity.”
According to Cekerevac, there are some historical examples: “We see a massive amount of money being pulled out of domestic mutual funds between September 2008 and March of 2009; again, poor market sentiment. The bottom of the market was March 2009.”
“You can’t pick the exact top or bottom, of course,” Cekerevac writes in Profit Confidential, “It is merely a tool to show you where the crowd of investors is moving their funds. But it gives you an idea that we’re closer to the bottom of the market.”
Cekerevac also refers to the strength of U.S. corporations. “They are extremely strong, generating good profits and huge amounts of cash. By most accounts, corporations have three times the cash level they did 10 years ago.”
“It makes more sense to get paid, through dividends, to invest in 500 of the largest corporations in the U.S. that are growing and flush with cash compared to the yield on 10-year treasuries,” says Cekerevac.
Cekerevac believes this is shortsighted thinking from scared investors with negative market sentiment, which is providing smart investors with buying opportunities.
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.
Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.