According to Mitchell
Clark, contributor to Profit Confidential,
the stock market rally continues, and it’s great if you own the right
companies. For the most part, Clark believes that the best wealth creation over
the last few years has come from large-cap, dividend paying stocks.
Clark says the he
never thought he’d be singing the praises of mature, blue chip companies and
dividends, but it’s always in the tough times that large-cap companies really
In the article “What
Doom and Gloom? The Stock Market Is Going Up,” Clark notes that with the
expectation of slow or stagnant economic growth in 2013, today’s best
performing stocks are likely to keep on leading.
“…No other large
economy on the planet is better able to right itself after a bubble or
recession like the U.S. economy,” says Clark. “So while the expectation for
economic growth isn’t robust, the stock market’s fair valuation combined with dividends can still
give low double-digit returns.”
Clark cites that U.S.
corporations are in excellent health, and this is part of the reason why
institutional investors are buying right now.
Referring to the stock
market crash in 2008/2009 as an example, Clark says that when there is such a
shock to the entire financial system, no one needs to find the fastest growing
micro-cap stocks—investors want to own what institutional investors are buying,
and that’s been dividend stocks.”
Clark does note that
the long-term chart on the S&P 500 is quite ominous: “The peaks make you
really wonder how the stock market is going to play out.”
According to the Profit Confidential contributor, there
remains fragility to the stock market today.
“Investment risk is
high considering all the potential shocks out there,” concludes Clark “The
stock market never ceases to amaze. We certainly are living in interesting
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%.Profit Confidential is Lombardi Publishing Corporation’s free
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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,