Second Half of Year to Be Rocky for Stocks, Predicts Leading Financial Newsletter Profit Confidential

At the mid-point of the year, the stock market had a stellar January, followed by some softness in February and March, followed by losses in April and May but some oversold buying in June. The key stock indices are still down from the end of the first quarter, and George Leong, contributor to Profit Confidential, believes that with many unknowns and stock market risk, it may likely be a rocky second half.

In the article “Get Ready for Some Action in the Second Half,” Leong says that since May 15, there have only been five bullish investor sentiment days on the NYSE and seven on the NASDAQ.

“Compare this to the start of the year when each session in January and February saw bullish sentiment along with the majority of March. The second-quarter sentiment has been muted,” says the Profit Confidential contributor.

Not only do you have the European debt crisis dragging on in the eurozone, but Leong points out that China is stalling, and the U.S. economy, while growing, is relatively stagnant.

“Combined, it means high stock market risk,” says Leong. “Corporate America may struggle in the second-quarter earnings season.”

Leong notes that there is also nearly $16.0 trillion in U.S. national debt and deficit levels, which adds to the stock market risk.

“California is nearly broke, and many other states are trying to squeeze the coffers, looking for money,” says Leong. “And while this is going on, you have about 13 million Americans looking for work and probably about 25 million Americans who are unemployed or underemployed.”

“The stock market risk needs to be monitored,” concludes Leong.

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 Confidentialwas 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 Confidentialis 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.