No More Monetary Stimulus, According to Leading Financial Newsletter Profit Confidential

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According to Mitchell Clark, contributor to Profit Confidential, the stock market is such a selfish system, looking only to satisfy its short-term need for capital gains. He reports that the stock market’s initial reaction to better-than-expected jobless claims and further monetary stimulus from the European Central Bank, the Bank of England, and China’s central bank was met with selling. Clark believes the initial sell-off was based on the stock market’s interpretation that more action from foreign central banks would make it less likely the Federal Reserve would engage in further monetary stimulus.

No More Monetary Stimulus, According to Leading Financial Newsletter Profit Confidential

No More Monetary Stimulus, According to Leading Financial Newsletter Profit Confidential

“Monetary stimulus and general policy action seem much more tailored to Wall Street than Main Street,” observes Clark. “It’s why there is much less affinity for the workings of the central bank.”

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According to Mitchell Clark, contributor to Profit Confidential, the stock market is such a selfish system, looking only to satisfy its short-term need for capital gains. He reports that the stock market’s initial reaction to better-than-expected jobless claims and further monetary stimulus from the European Central Bank, the Bank of England, and China’s central bank was met with selling. Clark believes the initial sell-off was based on the stock market’s interpretation that more action from foreign central banks would make it less likely the Federal Reserve would engage in further monetary stimulus.

“The stock market sure is fickle and, for the most part, irrational,” says Clark.

Over the years, Clark has noticed a dramatic, unofficial appeasement by the Federal Reserve of the needs of the stock market and Wall Street.

Monetary stimulus and general policy action seem much more tailored to Wall Street than Main Street,” observes Clark. “It’s why there is much less affinity for the workings of the central bank.”

In the article “Non-U.S. Central Banks’ Action the Best News for the U.S. Economy,” Clark argues that the central bank will have to act soon or wait until after the election, so as not to seem partial.

“In the end, all of the monetary stimulus to date has helped only a little bit, as the overleveraging in the housing market just needs more time to work itself out,” says Clark.

Clark believes all of the problems on Main Street are a result of the U.S. housing market burst. In his view, the U.S. economy does not require further monetary stimulus; it requires more time for the housing market to balance itself out.

“I think the stock market is poised to go higher and investor sentiment has improved significantly from the recent correction,” Clark concludes.

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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