Last year, Lombardi's Profit Confidential reported "The year 2007 won't be a big one for the stock market." It wasn't. The S&P 500 was up only 3.5% in 2007. If 2007 was extended by only a few days into 2008, the stock market was actually flat last year.

For 2008, the advisory predicts "Investors will Fair Better Being Invested in T-Bills As Opposed to the General Stock Market." The popular daily e-letter did qualify its prediction by saying small cap stocks, that are special situations, are not included in its forecast as new products, technologies and new management can always bring a small-cap stock to life.

Lombardi's Profit Confidential was bullish back in late 2006 on one particular stock market. Michael Lombardi, in giving his 2007 market forecast said: "The only stock market I'm bullish on for 2007 is the Toronto Stock Exchange (Canada's equivalent to the NYSE). The Toronto market was up 7.2% in 2007."

Lombardi is bearish on the U.S. stock market for 2008 for three main reasons.

As stated in the special market forecast from Lombardi's Profit Confidential, "Borrowing money in 2008 will become more difficult for consumers, even if interest rates decline sharply. The banks are tightening their purse strings because of the financial hit most banks have experienced because of the subprime fallout. American consumers are tapped out. The savings rate in the U.S. is near record lows and the typical American is not only spending more than she/he makes, the average debt-to-personal-income ratio is near a record high. Consume spending in the U.S. is drying which will push down corporate profits."

Profit Confidential goes on to say "Homebuilding in the U.S. will enter a quasi depression state in 2008 and the construction industry, one of the largest employers in the U.S., will make 2008 a record year for pink slips. We are predicting a major homebuilder will go bankrupt in 2008 creating a picture of 'better deals ahead' for consumers who really need/want to buy homes but are now waiting for better prices."

The third reason for the advisory's bearishness: "The decline in the value of the U.S. dollar in 2008 compared to other world currencies and the rise in gold prices (which we predict will become a media event in 2008) will cause confusion amongst consumers and investors resulting again in deferred consumer spending."

Lombardi's Profit Confidential is definitely bearish on stocks for 2008. For the full article, please visit: http://www.profitconfidential.com

Profit Confidential is Lombardi Financial's free daily investment e-letter. Written by financial gurus with over 100 years of investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, other investments and the economy. Lombardi Financial is a division of Lombardi Publishing Corporation, founded in 1986, now with over one-quarter million customers in 141 countries. For more information, and to get the popular Profit Confidential e-letter sent you daily, visit: http://www.profitconfidential.com