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Lenders and Borrowers "Just Say No" to New Credit
Why low interest rates are not stimulating the economy

By Bob Stokes
5/16/2013 4:30:00 PM

The desire of lenders to lend and of borrowers to borrow has shriveled dramatically. Interest rates have been historically low for years now, yet the economy is barely treading water. History shows that low interest rates are rarely bullish for the economy. Learn why.

Filed Under: conquer the crash, deflation, economic indicators, home sales, Interest Rates

Category: Interest Rates

The Lurking Danger Behind Ultra-Low Interest Rates
The quest for higher yield can lead to a damaged portfolio.

By Bob Stokes
4/22/2013 5:30:00 PM

Risk-averse investors who depend on fixed income have been hurt by ultra-low interest rates. To make ends meet, many resort to riskier vehicles like bonds. Some fixed-income investors have been sold on the idea that bonds are relatively safe compared to stocks. But The Wall Street Journal recently noted that, "Safety has rarely been more expensive -- or more dangerous." Learn about two risks that bond investors currently face.

Filed Under: Elliott wave, Interest Rates, junk bonds, money markets, municipal bonds, Robert Prechter, Treasury bonds, treasury yields, U.S. STOCK MARKET

Category: Interest Rates

As Home Equity Lines of Credit Surge, The Low-Interest Rate Trap is Set
Borrowers feel confident about the future

By Bob Stokes
3/12/2013 6:00:00 PM

Americans borrowed roughly $1-trillion against their homes in the decade leading up to the housing bubble burst. That dollar figure remains well above recent home equity loan levels, however, CNBC reports that home equity loans are expected to increase in 2013 as homeowners take advantage of low rates. Will a second wave of price declines in real estate come, just as most homeowners think the market has recovered from the first wave?

Filed Under: CNBC, commercial real estate, deflation, Elliott Wave Theorist, financial forecast, foreclosures, home sales, housing prices, Interest Rates, market forecasts

Category: Interest Rates

"Control of Interest Rates" is the Biggest Myth About the Federal Reserve
Bond investors need to prepare for a major change of trend

By Bob Stokes
1/31/2013 4:45:00 PM

Many observers of financial markets hang on the Federal Reserve's every word, and believe the central bank determines interest rates. However, the evidence shows that interest rates are not controlled by the Fed. Bond investors need to prepare for a major change in trend.

Filed Under: all the same market theory, central banks, conquer the crash, Elliott wave, herding, Interest Rates, market myths, Short Term Update, Treasury bonds, U.S. Federal Reserve (the Fed)

Category: Interest Rates

The Trap is Set for High-Yield Bond Investors
"Junk" bonds have that name for a good reason

By Bob Stokes
12/12/2012 5:45:00 PM

Low interest rates have attracted a swarm of yield hungry investors into junk bonds. Learn why these investors may have stepped into a soon-to-shut trap.
 

Filed Under: all the same market theory, credit rating, debt, Elliott wave, Interest Rates, junk bonds, risk appetite, Treasury bonds, treasury yields, U.S. Treasuries

Category: Interest Rates

Unsuspecting Bond Fund Investors Are Set Up for a Shock
Why risk in the rebalanced portfolio is ramping higher

By Bob Stokes
9/7/2012 5:00:00 PM

You can learn about a striking parallel between the bond market of 1929-1932 and today and what to expect next...

Filed Under: deflation, diversification, economic indicators, Elliott Wave Theorist, Interest Rates, investment strategy, investor psychology, junk bonds, market forecasts, money markets, municipal bonds, mutual funds, sentiment, Treasury bonds, treasury yields

Category: Interest Rates

If You Think Bonds Are a Conservative Investment, Think Again
Bond investors beware of deflation's impact on yields

By Bob Stokes
8/29/2012 4:45:00 PM

Elliott Wave International believes that economic contraction is set to accelerate. What does deflation mean for bond yields in the months ahead?...
 

Filed Under: Bob Prechter, deflation, economic depression, economic indicators, Elliott wave, inflation, Treasury bills (T-bills), Treasury bonds, treasury yields, U.S. Treasuries

Category: Interest Rates

Do Rising Treasury Yields Signal An Economic Recovery?
Back in June, our joint-issue Elliott Wave Theorist/Elliott Wave Financial Forecast Special Report revealed that the trend in interest rates was "poised to reverse." Today, the 10-year bond yield stands at a 3-month high.

By Nico Isaac
8/20/2012 5:00:00 PM

Back in June-July, the mainstream financial experts were certain of one thing: "The next big move [in US Treasury yields] is lower, not higher." YET -- from their July bottom, 10-, and 30-year Bond yields have RISEN to their highest level in 3 months. Turns out, our joint-issue June 2012 Elliott Wave Theorist/Elliott Wave Financial Forecast foresaw a major snag in the long bond bull market ahead...

Filed Under: Bob Prechter, Elliott Wave Theorist, treasury yields

Category: Interest Rates

If You Have Money in Bond Funds, Mutual Funds or Pension Funds, Please Read This Now
Bondholders: Protect and prepare your portfolio for a developing new trend

By Editorial Staff
6/14/2012 4:30:00 PM

When stocks crashed in 2008, investors found shelter in bonds. Most months of the financial crisis saw investors transfer billions from stock funds and into bond funds. Moreover, they did this against the advice of most high-profile experts and advisors, who have hated bonds for the past 10 years. Yet those betting against bonds have lost lots of money -- especially since 2009 -- even as investors holding bonds have gained.

All that is about to change, says Robert Prechter in a new urgent report for bondholders.

 

Filed Under: deflation, diversification, hyperinflation, inflation, Interest Rates, Robert Prechter, safe haven

Category: Interest Rates

Bonds and the Era of Deflation: A Safe Alternative to Stocks?
Special Report: A just-published 10-page urgent warning to bond investors

By Bob Stokes
6/7/2012 5:45:00 PM

The bull market in bonds has been going on for decades. The most recent bond investing craze merely heaped more icing on the cake. In fact, the interest rate on the Treasury's 10-year note has just fallen to the lowest level in U.S. history. Will bond investors continue to be rewarded?...

Filed Under: debt, deflation, economic depression, Elliott wave, Interest Rates, junk bonds, market forecasts, municipal bonds, risk management, safe haven, Treasury bills (T-bills), Treasury bonds, treasury yields, U.S. Treasuries

Category: Interest Rates

German Bund Yields Drop to Record Lows: Enjoy It While It Lasts
Can you apply a method like Elliott to forecasting bonds?

By Vadim Pokhlebkin
5/7/2012 9:15:00 PM

Bonds are a stepchild of the financial news world. Stocks, forex, energy, commodities -- all those markets get their spotlight many times a day on financial TV and in other media. Bonds, not so much. Bonds are complicated. For starters, there are lots of different bonds: Treasury, sovereign, agency, municipal, corporate; high-grade and high-yield (a.k.a. junk), etc. Then you have bond prices and bond yields; when one goes up, the other one goes down… Now multiply that across a dozen different nations. There is a lot going on.

Filed Under: Bear market, debt, diversification, Elliott wave, Elliott Wave trading, europe, European debt crisis, eurozone, Interest Rates, safe haven, trade targets, U.S. Treasuries

Category: Interest Rates

Believe the Promise to Keep A Broken Promise?
And why "broken promises" are getting downright popular?

By Robert Folsom
4/5/2011 5:00:00 PM

What would you think of a "bond" that allowed the borrower to skip interest payments, with a promise to pay the interest later? If you think "That means the borrower promises to keep a broken promise," you're spot-on. Welcome to the world of payment-in-kind (PIK) bonds...

Filed Under:

Category: Interest Rates

What's Behind The Recent Bond Market Rally?
You didn't have to wait for "unrest in Libya" to anticipate U.S. Treasury bonds' falling yields and rising prices.

By Nico Isaac
2/28/2011 4:45:00 PM

Starting in early February, the long-dated securities sector was undergoing its longest slump since 2008. The 10-year Treasury note yield had soared 130 basis points from its October trough to hit a nine-and-a-half month high, while prices (which move opposite yields) were in losing streak central. And, according to the usual suspects, the big "fundamental" arrow in bond prices would continue to point DOWN.

Filed Under: Daily Sentiment Index (DSI), fundamental analysis, Treasury bonds, U.S. Treasuries

Category: Interest Rates

Long-Term Bonds: The Best Possible Investment? Think Again
A free Club EWI report reveals why bonds do not provide shelter from the storm

By Nico Isaac
12/21/2010 5:15:00 PM

TREASURIES -- the very name conveys a thing that is secure, protected, and will appreciate over time. Otherwise, it'd be called something like "TRASHeries" or "Mattress Stuffers." Then, there's the official seal of the US Department of Treasury: its image of a scale and a key symbolize "balance" and "trust." And, finally, there's the mainstream economic experts who have it on good authority that long-term bonds increase in value during financial instability and uncertainty.

Filed Under: Campaign for Independent Thinking, conquer the crash, junk bonds, municipal bonds, Robert Prechter, U.S. Treasuries, Treasury bonds

Category: Interest Rates

How a "Dull" Investment Can Be a Great Investment
...until it isn’t any more. An important story for today's bond investors.

By Debbie Hodgkins
12/8/2010 3:30:00 PM

...I asked what kind of bonds they got into. “High-yield bond funds,” was the answer. What kind of bonds are these funds invested in? To this question I got blank stares. How long do you plan on staying in these funds? This got the reply I was afraid I'd hear: “Why would we get out when they are so much safer than stocks?” That's when my new interest in these once boring investments turned to fear -- for my friends.

Filed Under: junk bonds, municipal bonds, mutual funds, personal finance, Robert Prechter, U.S. Treasuries, Treasury bonds

Category: Interest Rates

The Next Major Disaster Developing for Bond Holders
A must-read FREE report for investors in fixed-income markets like Treasury bonds, municipal bonds or high-yield bonds

By Editorial Staff
11/3/2010 11:15:00 AM

Elliott wave analysis can warn you of trend changes when the rest of the investment public least expects a market reversal. With that in mind, we have created a new report for our free Club EWI members: "The Next Major Disaster Developing for Bond Holders." Enjoy this excerpt -- and for details on how to read this important report free, today, look below the excerpt.

Filed Under: Robert Prechter, Treasury bonds, municipal bonds

Category: Interest Rates

Bernanke: Talking Inflation, Walking Deflation

By Jason Lureman
10/15/2010 1:30:00 PM

Federal Reserve Board Chairman Ben Bernanke said on October 15 that the Fed is ready to start its next round of quantitative easing, if needed. But while Bernanke believes that the Fed's intervention will stimulate the economy, reduce unemployment and prevent deflation, Elliott Wave International's Senior Global Bonds Analyst Bill Fox believes that QE2 will do "nothing to alleviate this issue."

Filed Under: quantitative easing, quantitative easing, U.S. Treasuries, Ben Bernanke, U.S. Federal Reserve (the Fed), deflation, inflation, unemployment

Category: Interest Rates

Out from the Financial Jungle Comes T-Bill Rex
"Financial Strength" Will Come From "Financial Safety" in Coming Years

By Bob Stokes
10/14/2010 4:15:00 PM

One of the lowliest and often ignored creatures in the financial jungle is set to emerge triumphant...

Filed Under: Treasury bills (T-bills), Robert Prechter

Category: Interest Rates

Will Municipal Bonds "Ultimately Trap Investors?"
Are Munis Heading Toward the "Unthinkable?"

By Bob Stokes
10/12/2010 3:15:00 PM

These financially uncertain times have higher levels of risk where there used to be very little. A conservative investor is one thing, while a conservative investment is another...

Filed Under: Elliott Wave Principle

Category: Interest Rates

We All SAW Subprime, But Not All of Us LEARNED From It
Certain news stories do indeed reflect today's investor psychology

By Robert Folsom
10/5/2010 1:00:00 PM

It's been barely two years since we all saw exactly how a story like this must end. But this time it's even worse. Previously the toxic assets were based on subprime mortgages; now the toxic assets are based on subprime auto loans. Auto loans, dear reader...

Filed Under: subprime lending, investor psychology

Category: Interest Rates

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