Europe's "Flight to Safety" Now Boarding: Fasten Your Seatbelts!

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Europe's "Flight to Safety" Now Boarding: Fasten Your Seatbelts!
We've got Europe covered with a brand-new European Financial Forecast AND exclusive June 11 webinar

By Nico Isaac
Mon, 04 Jun 2012 18:00:00 ET

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Rumors of a Greece exit from the eurozone abound
The very livelihood of the euro currency is in doubt
Deposit outflows from the biggest European banks are skyrocketing
Bond yields on Spanish debt have soared to their highest levels since joining the eurozone in 1999

This situation is no joke.

The financial infrastructure of Europe continues to collapse under the magnitude-10 debt earthquake reeling across its continent. The "stay and fight" mindset of investors is finally giving way to a full-blown "flight to safety." So, when will the coast be clear to return?

On page 5 of the latest, June 2012 European Finanical Forecast, our "return manifesto" couldn't be clearer:

"Europe's real economic recovery will begin when 3 main conditions occur..."

You then learn what those 3 conditions are.

Also in the June 2012 European Financial Forecast:

The Bourses: This past March, European equities saw their best Q1 winning streak since 2006. The usual experts said, "get used to the gains." Our March European Financial Forecast disagreed: "The set-up for a reversal lies ahead." Since then, the bellwether FTSE led the pack down in its most bearish May in 3 years. Now, our page-length chart of 3 the EuroStoxx 50, DAX and CAC shows you whether their shared Elliott wave structure corresponds to an imminent bottom.

Risk On/Risk Off: The April European Financial Forecast revealed a 13-month extreme in complacency among options traders and warned: "This is the Calm before the Storm." Soon after, the "storm" -- in the form of May's selloff -- came. And, as our June Forecast reveals, the "calm" went away: the May volatility gauges are significantly higher than their March readings. So, are they high enough to indicate a market low? Find out now.

Long-Term Re-FAILURE Operation: The April European Financial Forecast foresaw that hope in the ECB's long-term refinancing operation (LTRO) hinged on rising stock prices. Once the market turned down, we said the "rose-colored future that pundits anticipate" would be shattered. Shattered it was with mid-May's "Banco-geddon"-- when outflows from Greek banks reached record highs, and share values in Europe's largest publicly-traded banks reached decade lows. Could this really be an "isolated" problem?

1, 2, 3: Three Cheers For Eurozone Break-Up? The mainstream has called it the "End of Days," the "Economic low-water mark," and a "ticking A-bomb." But, could the complete dissolution of the 13-year old currency bloc actually be a bullish event? The June European Finanical Forecast gives you a unique, socionomic forecast.

The Euro: Our June update shines a double-beam on the coming trend:

Euro, near-term: Our chart of the Euro versus the 21-day Moving Average shows daily sentiment near levels they have THRICE preceded one kind of move lately.
Euro, long-term: Since 2010, the euro has stayed above a clearly-defined chart support line. Our new chart shows you whether that line continues to remain intact.

UK Recession Redux? Economists say the UK has entered another recession. Our chart shows you how new UK housing and industrial construction is the more accurate measure than the GDP via these remarkable insights:

The 4 previous recessions since 1960 have kicked off with falling construction
All 4 ended when construction activity bounced off a 30-year-long "shelf of support"

Our chart also shows why, for the first time in 40 years, "recession" might be an inaccurate diagnosis for the coming economic condition in the UK.

What good is a flight to safety, if you can't see the objective ground below? Subscribe to EWI's European Financial Forecast Service and get instant access to the June European Financial Forecast TODAY, and to editor Brian Whitmer's upcoming Webinar on June 11. This is your chance to find out whether Europe's debt earthquake will become a global crisis.

Here's Your Double-Whammy, 30-Day RISK-FREE Offer:

Get the New, June 2012 European Financial Forecast + 1 FREE Seat at Editor Brian Whitmer's Upcoming June 11 Webinar

Your Unbeatable, Risk-Free Offer: Subscribe to EWI's comprehensive European Financial Forecast Service today, to get instant online access to 75+ charts on more than 80 pages across 3 Europe-focused Elliott wave publications.

FREE Bonus: You and other subscribers get a free "front-row seat" at EWI European editor Brian Whitmer's exclusive June 11 webinar. See and hear first-hand how Europe got to where it is today -- and get a unique, Elliott wave forecast for what's next for the EU economies, the euro, and the Continent at large.

Tags: banks, brian whitmer, CAC40, central banks, DAX, debt, debt crisis, Elliott wave, euro, euro stoxx 50, europe, european central bank, European debt crisis, european markets, European Union (EU), eurozone, Greek debt, socionomics

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