Global economic slowdown effects and tips to avoid becoming a bullish in US stock market
Michael Lombardi of Profit Confidential has expressed his concern for global financial slowdown. He has told the readers about the effect of economic slowdown on GDP (gross domestic product value) growth in many countries. Michael has published over one thousand articles on investment and money management, possesses huge knowledge and experience over the subject and has written the facts about the economic slowdown. Mr. Mitchell Clark, B.Comm with financial specializing in small-cap stocks, who has deep understanding and experience of the subject has also described the concepts clearly.
Michael Lombardi has predicted that, economic slowdown will be a big factor in how the U.S. economy does in 2012. This article describes how economic slowdown in Europe and U.S. affects consumer sentiment. Michael talks about how China's Ministry of Industry and Information Technology, described its industrial output as slowing to 11% in 2012, from 13.9% in 2011...but admits that there are significant downside risks to the forecast due to the global financial slowdown and GDP.
Like China, South Korea's central bank cuts its economic forecast for the first half of 2012, after experiencing 3.6% growth in 2011. The central bank noted the global economic slowdown as one of the factors tempering its outlook. Apart from this, the economic slowdown has an impact on European and Asian countries, and eventually on U.S. economy and American stock markets. It should be noted that, fell in exports and drops in industrial production points to economic slowdown, in Germany and Italy.
Mr. Mitchell explained performance of large-cap companies, also estimated that the year could produce a positive result in the broader stock market, but, over the near term, it's fair to expect some consolidation in share prices. He also said that, we have reasonable valuations among most large-cap companies, but by no means should anyone expect the stock market to begin a new bull market. He has also told the readers, that large-cap companies aren't spending their bulging cash balances. They aren't investing much in new plant and equipment, new hiring or training. U.S. recession is a real possibility next year and what are its effects on large-cap-companies. With slowing GDP, Europe is virtually in recession now, and to emerge from that large-cap companies need to start spending. If recession moves unsteadily than with equal fervor, the stock market is likely to experience a severe price correction.
Michael Lombardi has predicted that, economic slowdown will be a big factor in how the U.S. economy does in 2012. This article describes how economic slowdown in Europe and U.S. affects consumer sentiment. Michael talks about how China's Ministry of Industry and Information Technology, described its industrial output as slowing to 11% in 2012, from 13.9% in 2011...but admits that there are significant downside risks to the forecast due to the global financial slowdown and GDP.
Like China, South Korea's central bank cuts its economic forecast for the first half of 2012, after experiencing 3.6% growth in 2011. The central bank noted the global economic slowdown as one of the factors tempering its outlook. Apart from this, the economic slowdown has an impact on European and Asian countries, and eventually on U.S. economy and American stock markets. It should be noted that, fell in exports and drops in industrial production points to economic slowdown, in Germany and Italy.
Mr. Mitchell explained performance of large-cap companies, also estimated that the year could produce a positive result in the broader stock market, but, over the near term, it's fair to expect some consolidation in share prices. He also said that, we have reasonable valuations among most large-cap companies, but by no means should anyone expect the stock market to begin a new bull market. He has also told the readers, that large-cap companies aren't spending their bulging cash balances. They aren't investing much in new plant and equipment, new hiring or training. U.S. recession is a real possibility next year and what are its effects on large-cap-companies. With slowing GDP, Europe is virtually in recession now, and to emerge from that large-cap companies need to start spending. If recession moves unsteadily than with equal fervor, the stock market is likely to experience a severe price correction.