Nowadays, there is a growing fear that the U.S. economy will fall into a recession if the much-talked-about ‘fiscal cliff’ is not averted.
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New York, NY (PRWEB) November 25, 2012
In a recent Profit Confidential article, lead contributor and financial expert Michael Lombardi reports that so far this earnings season, of all the companies in the S&P 500 that recently reported corporate earnings, 60% of them missed their sales estimates. (Source: Bloomberg, November 9, 2012.)Similarly, he notes that for those companies that have provided guidance for the fourth quarter’s corporate earnings, they look worse than the third quarter. (Source: FactSet, October 31, 2012.) He adds that the global economy also has not improved, but deteriorated. According to the Profit Confidential expert, the major problems are still present, and another U.S. economic recession in 2013 is likely.
“Nowadays, there is a growing fear that the U.S. economy will fall into a recession if the much-talked-about ‘fiscal cliff’ is not averted,” notes Lombardi. “According to the Congressional Budget Office (CBO), if the fiscal cliff is not avoided, the U.S. economy will fall into a recession and unemployment will rise to 9.1%.” (Source: Congressional Budget Office, November 8, 2012.)
In the article “Why the U.S. Will Fall into Recession Even if the Fiscal Cliff Is Averted,” Lombardi also reports that Fitch Ratings is warning that the U.S. may see a downgrade if the lawmakers don’t come to a decision on the fiscal cliff in a timely manner. (Source: Fitch Ratings, November 7, 2012.)
However, the Profit Confidential expert believes that regardless of whether the fiscal cliff is averted, the U.S. economy will fall into another recession in 2013, with the credit crisis spreading in Europe, more countries falling into recession, Asia-Pacific economies witnessing growth slowdown, and global trade also slowing.
“In 2009, it was the financial system that caused a recession; now, it’s the forces of a global economic slowdown that will drag the U.S. economy downward once again,” concludes Lombardi.
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.