New York, NY (PRWEB) June 15, 2012
The U.S. jobs report was terrible, and Mitchell Clark, contributor to Profit Confidential, argues that China’s current economic weakness is responsible for hurting investor sentiment significantly.
In the article “U.S. Economy: Expectations Just Got Halved,” Clark notes that while there is some recovery in the U.S. economy, the expectations are coming down.
“The trading action in the stock market, oil prices, and U.S. Treasuries really signifies a major revision of expectations,” says Clark. “The outlook for the U.S. economy in 2012 just got halved. At least that is what these markets are saying.”
Clark believes that now is a decent time to be identifying and following solid, dividend-paying blue chips. “I do think the stock market has further downside until second-quarter earnings season begins,” he says.
Clark argues the U.S. economy is stronger than the recent jobs report suggests, but only in certain sectors. With the eurozone toys with zero GDP growth, Clark believes the U.S. economy may soon follow suit.
“While the stock market is fairly priced, this doesn’t mean that share prices won’t keep going lower,” says Clark.
While Clark argues that lower oil prices are a gift to consumers and the industrial economy, oil price market makers say that the U.S. economy is likely to grow at a much slower rate than previously forecasted.
“I’m afraid that the oil market is voting for a global recession in the near future,” says Clark.
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.