Phil Cannella is quick to tell investors the truth about the current economy, which is often not exposed by the mainstream media. For the last 3-4 years many consumers have felt extremely bullish about the market because they have seen the S&P and Dow, along with other indexes, catapult to new highs over the last several years. With this consumer optimism, investors have flocked to the markets in the hopes of generating more wealth.
The real question is, however: How long will this bullish optimism last? So far, 2015 has answered that question in the last quarter where markets have dropped by 10 – 20%. Yet some investors still seem to think that the market can rebound and are even talking about recent activity which saw the Dow and S&P bounce back and move into positive territory for the first time this year.
What Phil Cannella looks at however, is not what most financial professionals examine. Phil studies and reviews the underlying economy to see if real growth is occurring or whether speculation is the factor that is driving the market to new highs. When Phil Cannella looks at the economy, he warns that we cannot just look at companies such as Apple, Google and Amazon and consider their growth a reflection of the rest of the market.
When Phil Cannella educates attendees at his Crash Proof Retirement Educational Events, he explains that when investors see earnings figures from only the top companies, it gives them false hope and that speculation leads to massive investment in tech firms and others in the hopes of attaining wealth accumulation. However, as Phil Cannella points out, these companies are not necessarily the norm. In fact, third-quarter S&P 500 profits are projected to decline nearly 4%, according to FactSet. That would mark the first back-to-back quarters of shrinking profits since 2009. This isn’t expected to be a blip either. Wall Street analysts aren’t modeling for earnings and revenue growth to return until the first quarter of 2016.