No More Monetary Stimulus, According to Leading Financial Newsletter Profit Confidential

New York, NY (PRWEB) July 20, 2012

According to Mitchell Clark, contributor to Profit Confidential, the stock market is such a selfish system, looking only to satisfy its short-term need for capital gains. He reports that the stock markets initial reaction to better-than-expected jobless claims and further monetary stimulus from the European Central Bank, the Bank of England, and Chinas central bank was met with selling. Clark believes the initial sell-off was based on the stock markets interpretation that more action from foreign central banks would make it less likely the Federal Reserve would engage in further monetary stimulus.

The stock market sure is fickle and, for the most part, irrational, says Clark.

Over the years, Clark has noticed a dramatic, unofficial appeasement by the Federal Reserve of the needs of the stock market and Wall Street.

Monetary stimulus and general policy action seem much more tailored to Wall Street than Main Street, observes Clark. Its why there is much less affinity for the workings of the central bank.

In the article Non-U.S. Central Banks Action the Best News for the U.S. Economy, Clark argues that the central bank will have to act soon or wait until after the election, so as not to seem partial.

In the end, all of the monetary stimulus to date has helped only a little bit, as the overleveraging in the housing market just needs more time to work itself out, says Clark.

Clark believes all of the problems on Main Street are a result of the U.S. housing market burst. In his view, the U.S. economy does not require further monetary stimulus; it requires more time for the housing market to balance itself out.

I think the stock market is poised to go higher and investor sentiment has improved significantly from the recent correction, Clark concludes.

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

Profit Confidential is Lombardi Publishing Corporations 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

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 Lombardis current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit

Tags: , , , , , , , ,

Comments are closed.

CIGI Experts Outline Prescriptions for Cannes Summit and Beyond in Special Report on G20 Issues

Waterloo, Ont. (PRWEB) October 20, 2011 With a possible euro zone collapse and Greek insolvency likely to dominate the upcoming [...]

Pathways Home Health and Hospice Satu Johal Receives CFO of Year of the Year Award; Silicon Valley Business Journal Honoree

Sunnyvale, California (PRWEB) December 02, 2011 Satu Johal, CFO at Pathways Home Health & Hospice, received the Silicon Valley Business [...]

Latest Financial Regulation News

Working Together Towards Better Financial Regulation and Stability in Asia Image by Asian Development Bank Tellers attend to clients in [...]

European financial regulation – 4 questions to Olivier Garnier (Societe Generale)

Olivier Garnier, Chief economist at Societe Generale Group, expresses his view on European financial regulation and its reform. Video interview [...]

AMS Health Care Mortgage Corporation Provides Debt Service Savings to Hospitals Utilizing FHA 242 Mortgage Insurance Program

Jacksonville, FL (PRWEB) August 30, 2013 An oft-overlook and relatively unknown federal program for hospitals seeking capital for needed and [...]

Vermont’s Captive Insurance Industry Off to Best Start Since 2005

Montpelier, VT (PRWEB) April 16, 2012 First quarter licensure of new captive insurance companies is off to a strong start [...]