The U.S. economic outlook for 2013 is still very weak. Before the U.S. elections, there was hype about the housing market getting better, the stock markets soaring, and unemployment decreasing.
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New York, NY (PRWEB) November 24, 2012
In a recent Profit Confidential article, lead contributor and financial expert Michael Lombardi reports that in a recent interview with CNBC, Robert Shilller, creator of Standard & Poor’s/Case-Shiller Index, asserted that it is still unclear if there is actually a recovery in the U.S. housing market. As Lombardi notes, Shiller stated it could take up to 50 years for the housing market to get to where it was before the housing bubble burst. (Source: CNBC, October 31, 2012.) According to the Profit Confidential expert, the housing market in the U.S. economy is very weak, in spite of media reports to the contrary.
“The U.S. economic outlook for 2013 is still very weak. Before the U.S. elections, there was hype about the housing market getting better, the stock markets soaring, and unemployment decreasing,” states Lombardi. “But truth be told; there is no growth in the U.S. economy.”
As Lombardi notes, during economic growth, the market needs to see an increase in consumer demand and overall activity in the economy. But as Lombardi reports, the demand for the most basic needs by consumers is falling in the U.S. economy, while economic activity is decreasing.
In the article “What I’m Worried About Over the Next Four Years…,” Lombardi notes that American Electric Power Company, a utility company that delivers electricity to five million customers and has business in 11 states, reported that earnings fell 48% in the third quarter due to poor consumer demand and customer defection. (Source: Bloomberg, October 24, 2012.)
“Economic growth or not, utilities companies tend to be stable most of the time—but that’s not the case in the current U.S. economy,” states Lombardi.
With the hype of the presidential election now gone, Lombardi notes that the U.S. economic outlook for 2013 appears weak, suggesting that not much will change over the next four years for the U.S. economy.
The Profit Confidential expert stresses that even if the taxes on the rich (those making over $250,000 a year) are increased, the amount of new money coming into the government coffers will not make a large dent in the annual deficits the government is running.
Lombardi concludes that by cutting government spending more and raising taxes higher, the U.S. will just fall back into recession.
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.