If you're a passenger on a ship in the middle of the ocean, you can't detect a tsunami -- the wave heights are too short to distinguish them from regular open ocean waves. (But wave lengths can be hundreds of miles long.) Only when this energy reaches shallower waters does the mammoth tsunami wall form -- and washes away all that's in the way.
So when forecasters warn "Move to higher ground!" it's not wise to think, "I won't believe a tsunami is coming until I see it." You won't until it's too late.
It wouldn't be wise to ignore signs of "a financial tsunami," either.
One of the most famous ones is the 1929 crash. Until recently, it was "the" most famous one, but "the Great Recession" has come close. Awfully close. And what almost no one tells you right now is that another "tsunami wave" is likely on its way.
It's hard to believe that amidst all the bullish sentiment. On May 5, one of Goldman Sachs's directors told CNBC that they "think risk-reward is better now than for several weeks," noting that "they added fresh long positions in their Consumer Growth basket."
We at Elliott Wave International strongly disagree with such risk-reward stances.
The long-term Elliott wave picture for stocks that EWI's president Robert Prechter shows you in his just-published May Elliott Wave Theorist is "stunning." Those who know Bob know he doesn't use such words lightly.
(Note to bargain hunters: The Elliott Wave Theorist costs the same $20 a month today as it did 30 years ago, when Bob Prechter first started publishing it.)