Catastrophe for Small Businesses, Report by Leading Financial Newsletter Profit Confidential

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According to Michael Lombardi, lead contributor to Profit Confidential, small businesses are a critical part of job creation in this country, as they accounted for 48.5% of the job creation in 2011 and 51.6% of the job creation year-to-date. Lombardi says that more small businesses actually feel the U.S. economy will deteriorate, not grow, in the next six months, with one in four small-business owners believing this is a bad time to expand their business.

Catastrophe for Small Businesses, Report by Leading Financial Newsletter Profit Confidential

Catastrophe for Small Businesses, Report by Leading Financial Newsletter Profit Confidential

“Of those that were increasing their capital spending, 44% were creating investments that would translate into job creation and help bolster the view of an economic recovery, but the rest of their money went toward maintenance,” notes Lombardi.

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According to Michael Lombardi, lead contributor to Profit Confidential, small businesses are a critical part of job creation in this country, as they accounted for 48.5% of the job creation in 2011 and 51.6% of the job creation year-to-date. Lombardi says that more small businesses actually feel the U.S. economy will deteriorate, not grow, in the next six months, with one in four small-business owners believing this is a bad time to expand their business.

“This puts into question the whole economic recovery theory,” says Lombardi.

In the article “America’s ‘Small Business’ Catastrophe,” Lombardi states that in light of this, fewer small businesses were looking to increase their capital spending in the next six months.

“Of those that were increasing their capital spending, 44% were creating investments that would translate into job creation and help bolster the view of an economic recovery, but the rest of their money went toward maintenance,” notes Lombardi.

Lombardi believes that this is not a vote of confidence on any possible economic recovery here in the U.S. in 2012.

“To me, it paints a picture of more difficult times ahead. The government chose to focus on big business after the 2008 credit crisis. It should have been focusing on small business,” Lombardi argues.

These latest figures on U.S. small business are not encouraging for those expecting an economic recovery, believes the Profit Confidential lead contributor.

Of the 7.4 million businesses in this country, Lombardi notes that just over four million are sole proprietors or firms with four employees or less.

“How many of these businesses are just getting by in this supposed economic recovery? How many of these businesses suffered terrible revenue losses since the financial crisis hit in 2008?” asks 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.

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