Key Indices May Signal U.S. Stock Market Crash; Special Report by Leading Financial Newsletter Profit Confidential

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The S&P 500 stock market index has been outperforming the rest of the world’s stock markets, but according to Michael Lombardi, lead contributor to Profit Confidential, market indices in China and Japan are signaling that the U.S. market might shortly follow the world markets in a serious decline or even a crash.

Key Indices May Signal U.S. Stock Market Crash; Special Report by Leading Financial Newsletter Profit Confidential

Key Indices May Signal U.S. Stock Market Crash; Special Report by Leading Financial Newsletter Profit Confidential

“Even while the world economy was at the height of the recession in 2009, the Shanghai Stock Exchange was performing extremely well,” says Lombardi. “Since then, this key indicator has corrected 35%.”

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The S&P 500 stock market index has been outperforming the rest of the world’s stock markets, but according to Michael Lombardi, lead contributor to Profit Confidential, market indices in China and Japan are signaling that the U.S. market might shortly follow the world markets in a serious decline or even a crash.

In the article “These Three Stock Markets Crashing; Is Ours Far Behind?,” Lombardi says that the weak economic reports out of China’s key indicators are signaling that the Chinese economy could be weaker than many people think.

“Even while the world economy was at the height of the recession in 2009, the Shanghai Stock Exchange was performing extremely well,” says Lombardi. “Since then, this key indicator has corrected 35%.”

This index is at a three-year low; Lombardi believes this means that investors have little faith in a recovery in China.

“Which does not bode well for world stock markets, including the S&P 500,” says Lombardi. “Remember, China is the second-largest economy in the world after the U.S.”

Lombardi also looks at the third-largest economy, Japan.

“With its high debt levels and politicians fiercely debating how to deal with a weakening global economy, investors are also hesitant, as evidenced by the decline in the Japanese market,” says Lombardi.

Similar to what the S&P 500 represents here in the U.S., the Nikkei represents the most important companies in Japan, Lombardi explains.

“It is bouncing around a three-year low and shows no faith in the Japanese economy rebounding from its slump,” he notes. “In the past three years, this key indicator has fallen 24%.”

“The major question is if the stock markets of the second- and third-largest economies are both trading at three-year lows, how does this bode for the number one economy, the U.S.?” 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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