New York, NY (PRWEB) September 28, 2012
According to Mitchell Clark, financial expert and contributor to Profit Confidential, there are many contradictions in the stock market and the economic data right now. While Clark notes that statistics on the manufacturing sector are weak, he reports that industrial stocks like Anixter International and LKQ Corporation are doing great, suggesting that earnings numbers for the third quarter should be strong in spite of wider market weakness.
In the article “If There’s No Growth, Why Are These Stocks Going Up?,” Clark notes that the stock market is doing amazingly well.
“The Dow Jones Industrial Average and the other main stock market indices will probably tick higher until third-quarter earnings season begins, when we could see a lot of corporations ‘outperforming’ with flat earnings,” says Clark.
Clark highlights that expectations for this upcoming earnings season have already been reduced, and the current consensus is for earnings to be about the same as last year’s third-quarter earnings.
“It’s very true that corporate earnings are managed, so I think we’re still going to get a lot of companies beating consensus earnings estimates, even though business isn’t really getting better,” says Clark, adding that “…Larger American corporations have done an excellent job maintaining their earnings through the last recession to the present, largely due to strong cost controls.”
“It’s important for stock market investors to be very conservative going forward because economic growth in the world’s best economies is now very hard to come by,” says Clark.
Clark concludes by saying that while he doesn’t know what will happen to the U.S. economy, the stock market, or corporate earnings going into 2013, he does know that an equity investor’s only friends going forward are likely to be dividends, with a little gold on the side.”
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.