According to Profit Confidential, “Several measures of consumer confidence released in October say that consumer confidence is at its lowest level since the stock market hit a 12-year low in March of 2009. In particular, a Bloomberg Consumer Comfort Index survey last week revealed that 95% of those surveyed had a negative opinion about the economy, the worst reading of consumer confidence for the index since March 2009.”
Profit Confidential says that the biggest stock market profits are made going against the “herd mentality.” When stock advisors are at their most bearish level and consumer confidence is also at its worst level, both since March 2009, the popular e-letter says that you have a catalyst for higher stock market prices.
Michael Lombardi, a lead contributor to Profit Confidential, writes, “What happened when consumer confidence hit a low in March 2009? Stock prices started to rise. In fact, the stock market went up almost 100% from March of 2009 to May 2, 2011. Since the Dow Jones Industrial Average hit 10,400 on October 4, 2011, the stock market has rallied 17%.” As Lombardi has been forecasting, the stock market will continue to ride the wall of worry higher, as stock advisor and consumer confidence pessimism remains at highs not seen in almost 30 months.
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 www.profitconfidential.com.
Profit Confidential is Lombardi Publishing Corporation’