New York, NY (PRWEB) September 11, 2012
In the recent article “The Great Housing Recovery Hoax” Michael Lombardi, lead contributor to Profit Confidential, declares that the housing market is nowhere near a bottom. While sales of new homes in the U.S. rose 3.6% this past July to the highest level in two years, the economic news of a housing market recovery is far from true, states Lombardi.
“Economists in general believe 700,000 in new home sales in a year is considered normal during modest economic growth,” he notes. Citing the U.S. Department of Commerce, Lombardi reports, “We’re on pace for only 372,000 new home sales this year, 46% below the level that is considered normal.”
Lombardi goes on to add that home prices in the U.S. are still down about 31% since their peak in 2006.
“For the homes prices to get back to the level they were six years ago, home prices will have to go up 45%,” says Lombardi. “That’s just not possible with consumer confidence in a major slump, economic growth stagnant, and the unemployment rate so high, not to mention all the foreclosed homes overhanging the market.”
According to the Profit Confidential lead contributor, the data show world economic growth is slowing, not rising. He reasons that eventually, the Fed will need to expand the money supply further, and, in the long-term, the more money there is created in the system, the higher the chances of inflation and rising interest rates, as history has shown.
“Interest rates will not rise this year or in 2013. But what about if interest rates start to rise in 2014?” asks Lombardi. “A simple one percentage point increase in interest rates will send the housing market flat on its back again.”
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.