There’s been good price momentum so far in 2012, but the economic news is still lackluster.
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New York, NY (PRWEB) March 14, 2012
There is no rush for individual investors to take on new positions in this market, according to Mitchell Clark, contributor to Profit Confidential. In his recent Profit Confidential article, What the Current Trading Action’s Signaling, Clark highlights that, while investor sentiment is still decent, investment risk in equities continues to be very high and a conservative portfolio stance is warranted.
The experienced analyst thinks that stock market investors need to be extremely cautious going forward this year.
“There’s been good price momentum so far in 2012, but the economic news is still lackluster,” says Clark.
Clark believes that the stock market’s been going up because of the Federal Reserve, decent corporate earnings, and reasonable valuations. “This can only take share prices so far.”
“Only now is the stock market barely above where it was last April and I think we’re due for another change in the price action,” says Clark.
Clark states that he would be a buyer of dividend paying stocks, but only after a price correction occurs.
“I don’t see how corporate earnings will be able to accelerate when you have slow growth in the U.S. economy and no growth in Europe,” says Clark.
Trading volume has been mediocre, according to Clark. “I expect a stock market correction to occur soon. Commodities could be hit as well.”
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.