New York, NY (PRWEB) October 22, 2012
Michael Lombardi, financial expert and lead contributor to Profit Confidential, believes that the economy is improving for the rich, not the poor. Lombardi reports that while recent data shows unemployment now below its high of 10%, the underemployment rate, which includes part-time workers who can’t get full-time jobs and people who have given up looking for work, still hovers around 15%. From this standpoint, Lombardi notes that for the Average Joe, very little has changed in the U.S. economy.
“The average American’s savings have crumbled, his purchasing power is in decline, and his inflation adjusted income has gone down,” states Lombardi.
When the most recent unemployment rate numbers came out, Lombardi notes that there was an initial wave of cheerfulness as the unemployment rate finally went down below eight percent.
“It is true that the unemployment rate has gone down from its highs of 10%, but does it really draw a clear picture of the U.S. economic condition?,” questions Lombardi. “No, it doesn’t.”
Pointing to the 15% underemployment rate, Lombardi adds that the jobs that have been created since the Great Recession hit are all in low-wage-paying industries.
In the article “Is There Really Demand for Work in the U.S. Economy?,” Lombardi warns that there is more trouble still ahead in the U.S. economy.
The Profit Confidential expert points out that job openings in the U.S. economy fell for the months of July and August, with job openings in August falling 4.3% as compared to June.
“The job opening slowdown means the companies are hesitant to hire and demand for workers is low in the U.S. economy,” concludes Lombardi. “… As earnings growth declines, big businesses will struggle to make cuts so they can show better earnings. Sadly, this time around, these companies will look at employee cuts.”
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.