New York, NY (PRWEB) October 08, 2012
According to Michael Lombardi, lead contributor to Profit Confidential, a healthy stock market rally usually triggers consumer spending in mid-market consumer retail markets, like steakhouses, but there is no evidence of that occurring in this current U.S. economy—even though key stock indices have risen significantly. With steakhouses like Capital Grille reporting the lowest earnings since 2010, it is evident that economic growth is stagnant.
“When consumers spend more, businesses grow and, in return, the economy grows,” Lombardi simply states. “…the current U.S. economy lacks consumer spending and thus it lacks growth.”
In the article “Steak Houses Struggle as Big Spenders Start to Feel the Pinch,” Lombardi notes that in a growing U.S. economy, when consumer spending goes up, consumers are more inclined to go to a good restaurant, buy a steak dinner, purchase that better smelling cologne, and buy the better looking car.
With evidence of luxury goods and service providers getting hit by the economic slowdown alongside mid-market restaurants, Lombardi states that it’s not only the middle class that has been squeezed but the high-income earners as well.
Lombardi believes the pullback in sales at fine-dining restaurants can be attributed to higher-income earners feeling less confident about the economy and, thus, holding back on their spending.
“The pockets of the average American in the U.S. economy have been getting emptier each passing day in this post-recession recovery,” says Lombardi.
The Profit Confidential lead contributor concludes, “Until the average American can retain enough disposable income to raise consumer spending, the U.S. economy will not see any economic growth.”
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.