AFRICANEWSWIRE.NET (March, 21 2012) China’s premier reduced the country’s GDP economic forecast for growth in 2012 to 7.5% from 8.0% and, according to Michael Lombardi, lead contributor to Profit Confidential, this drop is significant. In Lombardi’s article, China’s Economic Growth to Come Crashing Down?, he outlines his worry in a Chinese economic slowdown scenario.
If GDP growth comes in as expected in 2012 at 7.5%, it would be the lowest economic growth experienced in China since 2004, Lombardi.
Lombardi believes that the slowdown in China and Europe is affecting other nations in Asia, namely Japan, Singapore, South Korea, and Malaysia. The drop-off in exports reported by each of these countries has been dramatic.
So can China’s economic slowdown accelerate? The answer of course is yes, as the economic slowdown in Europe looks to be accelerating, Lombardi.
Lombardi points out that, in five of the last six months, Europe’s services industries have shown negative economic growth. With this backdrop around the world, Lombardi believes that the U.S. will face difficult times ahead.
I would say be careful of that stock market rally, 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%.
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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.