So while the expectation for economic growth isn’t robust, the stock market’s fair valuation combined with dividends can still give low double-digit returns.
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New York, NY (PRWEB) August 31, 2012
According to Mitchell Clark, contributor to Profit Confidential, the stock market rally continues, and it’s great if you own the right companies. For the most part, Clark believes that the best wealth creation over the last few years has come from large-cap, dividend paying stocks.
Clark says the he never thought he’d be singing the praises of mature, blue chip companies and dividends, but it’s always in the tough times that large-cap companies really shine.
In the article “What Doom and Gloom? The Stock Market Is Going Up,” Clark notes that with the expectation of slow or stagnant economic growth in 2013, today’s best performing stocks are likely to keep on leading.
“…No other large economy on the planet is better able to right itself after a bubble or recession like the U.S. economy,” says Clark. “So while the expectation for economic growth isn’t robust, the stock market’s fair valuation combined with dividends can still give low double-digit returns.”
Clark cites that U.S. corporations are in excellent health, and this is part of the reason why institutional investors are buying right now.
Referring to the stock market crash in 2008/2009 as an example, Clark says that when there is such a shock to the entire financial system, no one needs to find the fastest growing micro-cap stocks—investors want to own what institutional investors are buying, and that’s been dividend stocks.”
Clark does note that the long-term chart on the S&P 500 is quite ominous: “The peaks make you really wonder how the stock market is going to play out.”
According to the Profit Confidential contributor, there remains fragility to the stock market today.
“Investment risk is high considering all the potential shocks out there,” concludes Clark “The stock market never ceases to amaze. We certainly are living in interesting times.”
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.