Profit Confidential Survey Indicates Stock Market Rally About to End

Michael Lombardi, lead contributor to Profit Confidential, believes that rapid inflation in commodity prices will eventually push interest rates higher and this will end the stock market rally. He bases this conclusion on a survey Profit Confidential recently performed amongst its readers, regarding inflation.

In the article, The Domino Effect That Will End this Stock Market Rally, Lombardi outlines a survey performed by Profit Confidential in which the vast majority of respondents stated that they were personally experiencing inflation.
“The readers have made their voices heard on the topic of rapid inflation,” suggest Lombardi. “The response was that people felt that inflation was closer to 10%, while the official government Consumer Price Index (CPI) states that inflation is at 2.9%.”
Lombardi believes that, in the next month, during first-quarter earnings season, the major U.S. companies will release guidance as to how 2012 will shape up in terms of economic growth and rapid inflation.
“Many restaurant chains across the nation have been discussing their biggest struggle as high commodity prices against the fragile economic recovery,” suggest Lombardi.
Lombardi cites that some firms, like ConAgra Foods, Inc., had fourth-quarter numbers that slightly exceeded expectations, but the company lowered its expectations for the current quarter and sees a difficult 2012, also due to commodity prices.
“ConAgra is experiencing rapid inflation in commodity prices from grain to meat to fuel,” suggest Lombardi.
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’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 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.

Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter.

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This release was published on openPR.