New York, NY (PRWEB) October 30, 2012
Mitchell Clark, financial expert and contributor to Profit Confidential, reports that in September, consumer spending grew 0.8%, after an unrevised rate of 0.5% in August, and the figure beat consensus. But with Hurricane Sandy closing the stock market yesterday, Clark still thinks the near-term trend is lower. Clark points out that Hurricane Sandy couldn’t have come at a worse time for revenues and investor sentiment, as both continue to deteriorate.
Clark notes that investor sentiment is deteriorating because investors continue to be risk-averse, buying bonds instead of stocks.
“Even with modestly positive gross domestic product (GDP) numbers from the U.S. and U.K. and signs of economic stability in China, investor sentiment is going downward, because the appetite for risk is dwindling,” says Clark. “Oil at $88.00 a barrel says it all. Hurricane Sandy will no doubt keep oil prices down this week.”
According to Clark, price deterioration among blue chips has also been significant this month.
“Most blue chips have been deteriorating since the beginning of the month,” reports Clark. “The stock market is not expensively priced by any means, but revenue growth is deteriorating… Benchmark stocks like PepsiCo, McDonalds, and 3M have taken big price hits.”
In the article “Hurricane Sandy Halts Trading—But Not the Decline in Revenue Growth,” Clark notes that many blue chips remain very fairly priced in this market, and because of this, he can’t see the stock market crashing without some major catalyst.
Clark concludes by noting that his near-term outlook is for further decline in the major stock market indices, followed by consolidation. Fair valuations will keep the decline tempered.
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.