“The Norfolk Southern Corporation announcement that
corporate earnings will be below the estimates that analysts have calculated is
quite important,” says Cekerevac. “Taken together with the FedEx warning, this
tells [investors that] the underlying economy is much weaker than many believe.”
In the article “One
More Warning That You Should Be Aware Of,” Cekerevac points out that
because both Norfolk
and FedEx transport such a wide spectrum of goods, corporate earnings could
very well come in below estimates this fall.
While the Profit
Confidential contributor did estimate that coal shipments would decrease,
as natural gas has plummeted in price, Norfolk
also cited much lower shipments of merchandise than expected.
According to Cekerevac, the market has been up sharply due to the anticipation of monetary stimulus. He notes that with the market at such high levels, there could certainly be a pullback over the next few weeks if more companies lower their corporate earnings guidance.
Cekerevac is anticipating a fall sell-off in the market, which he believes might offer a better entry point for long-term investors.
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.
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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